20100405min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

APRIL 5, 2010 – 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 March 31, 2010. A vote was taken to approve the minutes as written.

The second order of business was approval of the CONSENT AGENDA:
2. Don Howell/Kris Sasser's April 2, 2010 Decision Memorandum re: Avista Rate Case -- Electric and Natural Gas, Case Nos. AVU-E-10-01 and AVU-G-10-01.3. Scott Woodbury's April 1, 2010 Decision Memorandum re: Schedule 191 -- Energy Efficiency Rider Adjustment, Case No. AVU-G-10-02 (Avista).4. Idaho Power's Motion for Extension to File Reply Comments, Case No. IPC-E-09-28. [No Memo. Weldon Stutzman, Attorney.]
The Commission voted unanimously to accept Staff’s recommendations for items 2 and 3.
Regarding item 4, Commissioner Smith made a motion to grant Idaho Power an extension of time to file its reply comments in Case No. IPC-E-09-28 with a due date of April 9, 2010. A vote was taken on the motion and it carried unanimously.
The next order of business was MATTERS IN PROGRESS:
5. Daniel Klein's April 1, 2010 Decision Memorandum re: Formal Complaint of John Brewster.
Mr. Klein reviewed his Decision Memo. He stated that since preparing the memo, Verizon had changed its line extension quote to $32,120.26.
Commissioner Kempton confirmed that Mr. Brewster’s contractor was allowed to do the trenching and the initial installation of the conduit, which was not included in the bid.
Commissioner Smith asked about the new bid from Verizon, and Mr. Klein explained the original bid had provisions for load coils that weren’t going to be needed, and Verizon had agreed to waive the engineering costs, which lowered the bid.
Commissioner Redford asked about Verizon’s bid and Mr. Klein clarified that the bid included pulling the wire through the conduit, putting in pedestals, doing the splicing and connecting the service to the home. Commissioner Redford confirmed that the contractor’s bid was $14,387.50, which also included supply of the materials.
Commissioner Kempton said it didn’t seem unusual for a company to have a sole source provider for installation under contract. He said his inclination was not to favor Mr. Brewster’s formal complaint, but on the other hand, it would be good to have Verizon weigh in and have a discussion on the issue of sole sourcing and whether there should be a list of contractors from which to choose.
Commissioner Smith stated she was in favor of accepting the complaint and issuing the summons as the vehicle by which the Commission can establish a record and have the discussion Commissioner Kempton had mentioned. She said it is important to hear directly from Verizon about its policies, how it issues its contracts, and whether there is any flexibility for the customer.
The Commission voted unanimously to accept Mr. Brewster’s formal complaint and issue a summons to Verizon.6. Grace Seaman's April 2, 2010 Decision Memorandum re: 2009 Idaho Telephone Service Assistance Program Annual Report, Case No. GNR-T-10-02.
Ms. Seaman reviewed her Decision Memo. Commissioner Kempton noted that in looking at the ratio of the end of the year balance expected for 2010 compared to total expenditures, there is about a 16% balance left over, which is reasonable.
The Commission voted unanimously to maintain the monthly Idaho Telephone Service Assistance Program surcharge rate of $0.06 per line as adopted in Order No. 30775, and to accept the annual report and adopt the Administrator’s budget for 2010.7. Grace Seaman's April 2, 2010 Decision Memorandum re: 2009 Telecommunications Relay Service Annual Report, Case No. GNR-T-10-03.
Ms. Seaman reviewed her Decision Memo. Robert Dunbar, Administrator of the Idaho Telecommunications Relay Service, was present. Commissioner Kempton thanked Mr. Dunbar for his work in preparing the annual report.
The Commission voted unanimously to accept the Administrator’s recommendation to maintain the current TRS contribution levels adopted in Order No. 30759, and accept the annual report and adopt the Administrator’s budget for 2010.
Commissioner Smith asked Mr. Dunbar to update the Commission on FCC activities that might impact the TRS program. Mr. Dunbar replied that the FCC is looking at video relay fraud cases. He said there are about 26 federal indictments out now and the total amount of fraudulent returns was about $100 million, so the FCC is tightening its regulations. He said we will be seeing some new rules and regulations on what type of calls will be billable and a new list of what will not be billable, which will impact the state TRS program. He said the program has already started to tighten some of its practices, such as requiring that none of the employee calls made with relay services can be billed to the relay. Commissioner Smith confirmed with Mr. Dunbar that Hamilton Telecommunications was not involved in any of the indictments. There was no further discussion.
FULLY SUBMITTED MATTERS:
8. Deliberation re: Time Warner Cable Information Services (Idaho), LLC's Petition for Reconsideration, Case No. TIM-T-08-01. [No Memo. Neil Price, Attorney.]9. Deliberation re: Idaho Power's Application for Approval of a Stipulation Regarding Prudency Determination of Energy Efficiency Rider Funds Spent During 2002-2007, Case No. IPC-E-09-09. [No Memo. Weldon Stutzman, Attorney.]
Commissioner Kempton stated that items 8 and 9 would be deliberated privately immediately following the meeting.
EXECUTIVE SESSION MATTERS:
10. Discussion Concerning Pending Litigation Against BPA in the Ninth Circuit Court of Appeals. [No Memo. Don Howell, Attorney.]
Commissioner Kempton stated that in consideration of Idaho Code 67-2345(1)(f), the Commission would vote to go into executive session. Commissioner Smith made a motion to go into executive session to discuss the pending litigation. The motion carried unanimously.
There was no further business before the Commission and Commissioner Kempton adjourned the meeting.

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COMMISSION SECRETARY DATE OF APPROVAL

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