20090831min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

August 31, 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 August 24, 2009. A vote was taken to approve the minutes as written.

The second order of business was approval of the CONSENT AGENDA:
2. Kristine Sasser's August 25, 2009 Decision Memorandum re: Falls Water Company's Application to Increase Its Basic Rates and Charges, Case No. FLS-W-09-01.
The Commission voted unanimously to process the case by Modified Procedure and suspend the Company’s proposed effective date of September 10, 2009 to allow adequate time for comment and processing of the case.3. Scott Woodbury's August 25, 2009 Decision Memorandum re: General Rate Case--Proposed Scheduling, Case No. BCS-W-09-02 (Bar Cirlce "S").4. TJ Golo's August 27, 2009 Decision Memorandum re: Idaho Power's Tariff Advice - New Ordinance Adopted by the City of Star and Adding City of Filer Franchise Fee, Tariff Advice No. 09-06.5. TJ Golo's August 27, 2009 Decision Memorandum re: Rocky Mountain Tariff Advice No. 09-04 - Update Regulations 7, 8, 9 and 10 to Comply with Changes to IDAPA Administrative Rules, Case No. 31-2101-0701; Case No. RUL-U-07-02, effective April 2, 2008.
The Commission voted unanimously to accept Staff’s recommendations for the above three agenda items.
MATTERS IN PROGRESS:
6. Grace Seaman's August 28, 2009 Decision Memorandum re: 2009 Idaho Universal Service Fund Annual Report and Recommendations.
Ms. Seaman noted an error in her Decision Memo on the last line of page 6, where the reserve balance should have read $327,306, not $538,814. She also noted that the Administrator of the Idaho Universal Service Fund (USF), Alyson Anderson, had tried to join the meeting by telephone but was not able to do so because of technical difficulties. Ms. Seaman reviewed her Decision Memo. Commissioner Smith commented that the Commission’s strategy in setting up the USF had proven to be successful because it had deliberately set the independent telephone companies’ local exchange rates at a point where it would take several years before the companies would catch up to 125% of the statewide average threshold rate. She said in light of the statute, however, Idaho Code §62-610(3), the Commission must now require the companies to change their residential rates in order to qualify for funding. Commissioner Smith made a motion to adopt the budget proposed by the Administrator and adopt Option 2 with Staff’s recommendation not to adjust the switched access rates of ATC Communications and Inland Telephone Company. She said as Staff has pointed out, those rates for these two companies are very uncertain and change dramatically from year-to-year; therefore, it is unnecessary to change their switched access rates but it is necessary to change their residential rates.
Commissioner Redford asked about wireless companies and the USF, in light of the certificates the Commission has granted in the last several months. Ms. Seaman replied that the statute does not require wireless companies to pay into the Idaho USF. She said that the Idaho USF is based on wireline residential and business lines and intrastate long distance minutes and does not apply to wireless companies. Commissioner Redford asked about getting wire service to Pearl, Idaho customers and if the Pearl residents could petition other companies to offer wire service into their area without running afoul of Qwest. Ms. Seaman replied that Pearl is a wireline exchange served by Qwest and Qwest is not considered a rural telephone company provider; therefore, Qwest does not have access to the high cost fund. Commissioner Redford asked if another carrier could provide wireless service or some combination of services to Pearl if Qwest were to give up the service territory. Mr. Stutzman replied that as the USF is currently structured, it does not provide for capital improvements to serve an unserved area.
There was no further discussion and Commissioner Redford seconded the motion made by Commissioner Smith.
Commissioner Kempton noted he is a customer of Albion Telephone Company and he has no material interest, direct or indirect, in the company. He also further clarified the number correction. A vote was taken on the motion and it carried unanimously.
There was no further business and Commissioner Kempton adjourned the meeting.

DATED this ______ day of August, 2009.

____________________________________
COMMISSION SECRETARY

2