20020905Volume 6, pg 471-476.pdf

1 BOISE, IDAHO, SEPTEMBER 5, 2002, 11:45 A.M.

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4 (The following proceedings were

5 had in open hearing.)

6

7 DANIEL R. SCHETTLER,

8 produced as a witness at the instance of Monsanto,

9 having been previously duly sworn, was further

10 examined and testified as follows:

11

12 COMMISSIONER HANSEN: That's all the

13 questions I had.

14

15 EXAMINATION

16

17 BY COMMISSIONER SMITH:

18 Q. Okay, I guess I only had one question

19 of you:

20 In response to a question by

21 Commission Hansen, you discussed how business

22 conditions for Monsanto require a certain level of

23 electric rates to continue. And I guess what struck

24 me is that this Commission generally is looking at

25 business conditions for the utility industry, and in

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HEDRICK COURT REPORTING SCHETTLER (Com)
P.O. BOX 578, BOISE, ID 83701 Monsanto

1 particular the Company that we're regulating, in

2 order to determine a reasonable price. So I guess

3 you could see the difference there and the point of

4 view, and it just -- I don't know if you want to

5 comment on that, but it just struck me that it

6 appears that a customer who wants us to set their

7 rates based on their business conditions and we go a

8 lot of times to public hearings and have hundreds of

9 customers say, I can't afford that. But, really,

10 that's not the deciding factor in what's a

11 reasonable and appropriate rate for the Commission

12 to decide.

13 A. So I would have two comments I'd like

14 to make:

15 First of all, only because Monsanto is

16 such a huge factor to the overall economy of

17 Southeast Idaho, I think it's -- it's extremely

18 important to try to help Monsanto remain healthy

19 without penalizing the Utility.

20 We think that we can make a case that

21 our existing price is a fair one, and we have

22 offered 1,000 hours of interruptibility to help make

23 it even more so. So we think that we're paying our

24 fair share at that number, and we're not asking for

25 a subsidy, but just to have your understanding of

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HEDRICK COURT REPORTING SCHETTLER (Com)
P.O. BOX 578, BOISE, ID 83701 Monsanto

1 the business situation that we're in.

2 Q. Well, I think I do have a clear

3 understanding of that, and I'm glad you're making

4 that case, attempting to, because I think that's the

5 foundation upon which a Commission Decision has to

6 rest that it is a fair rate, given the evidence.

7 Thank you.

8 COMMISSIONER SMITH: Do you have

9 redirect, Mr. Budge?

10 MR. BUDGE: I don't believe so. Thank

11 you.

12 COMMISSIONER SMITH: Okay. Thank you

13 for your help.

14 (The witness left the stand.)

15 COMMISSIONER SMITH: Brings us to the

16 hour of I think we should break for lunch and come

17 back at 1:00.

18 (Noon recess.)

19 COMMISSIONER SMITH: We'll be back on

20 the record. Mr. Budge.

21 MR. BUDGE: We'd call

22 Richard Anderson.

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HEDRICK COURT REPORTING SCHETTLER (Com)
P.O. BOX 578, BOISE, ID 83701 Monsanto

1 RICHARD M. ANDERSON,

2 produced as a witness at the instance of Monsanto,

3 being first duly sworn, was examined and testified

4 as follows:

5

6 DIRECT EXAMINATION

7

8 BY MR. BUDGE:

9 Q. Would you please state your name and

10 address for the record?

11 A. Name is Richard M. Anderson. My

12 address is 39 West Market Street, Suite 200,

13 Salt Lake City, Utah.

14 Q. Did you prefile direct and rebuttal

15 testimony in this case on behalf of Monsanto?

16 A. I did.

17 Q. And did you also present Exhibits 212

18 through 215?

19 A. I did.

20 Q. Do you have any corrections or changes

21 you wish to make to either your testimony or the

22 exhibits?

23 A. I do. I have four small corrections

24 to the direct testimony.

25 Q. Would you just go through those one at

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HEDRICK COURT REPORTING ANDERSON (Di)
P.O. BOX 578, BOISE, ID 83701 Monsanto

1 a time?

2 A. Sure. The first one is actually the

3 page numbers. The first page of the testimony has

4 as a title Introduction and Qualifications. Then if

5 you turn to the next page, it's listed as page 4.

6 That is simply a mistake. Page 2 and page 3 do not

7 exist. They are not missing from the testimony, the

8 pagination was just incorrect.

9 The second correction is on page 9,

10 line 13, where it reads 166 megawatts. That should

11 be 162.5.

12 The third correction is on the

13 following page, on page 10, line 16, the last word

14 in that line where it reads "two." That should

15 read -- that should read "five."

16 And, finally, the last correction is

17 on page 15, line 11. The three words "the

18 revenue -- "the revenues and" should be removed so

19 that the complete sentence reads "the approach now

20 advocated by the Company alters the current system

21 and assigns cost to the Utah jurisdiction only."

22 Those are my corrections.

23 Q. Mr. Anderson, if I were to ask you the

24 same questions today that are contained in your

25 prefiled direct and rebuttal testimony, would your

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HEDRICK COURT REPORTING ANDERSON (Di)
P.O. BOX 578, BOISE, ID 83701 Monsanto

1 answers be the same?

2 A. They would.

3 MR. BUDGE: Given that, we would move

4 to have Mr. Anderson's testimony and exhibits spread

5 upon the record, and we would tender him for

6 cross-examination.

7 COMMISSIONER SMITH: Without

8 objection, it is so ordered.

9 (The following prefiled direct and

10 rebuttal testimony of Mr. Anderson is spread upon

11 the record.)

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HEDRICK COURT REPORTING ANDERSON (Di)
P.O. BOX 578, BOISE, ID 83701 Monsanto