20060414Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:DAVID HATTAWAY
DATE:APRIL 12, 2006
RE:CALCULATING THE 2006 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2006-1 AND F-2006-
In March 2006 the Legislature passed House Bill 795 , House Bill 799, House Bill
844, and House Bill 862 appropriating $4 545 300 to the Commission for Fiscal Year 2007. The
total appropriation consists of $133 900 from fees assessed on railroad corporations, $4 342 900
from fees assessed on public utilities and $68 500 expenditures for pipeline safety activities
reimbursable by the federal government. Attachment 1 shows the calculations to arrive at the
following amounts. Attachment 2 shows the calculations to arrive at the following rates.
The utilities do not have an adjusted carry-over balance from Fiscal Year 2005
expenditures. However, a true up of $6 252 is added for the difference between last year
estimated federal reimbursement and the actual dollars received. Thus, the Staff calculates that
the 2006 assessment for public utilities to fund Fiscal Year 2007 is $4 349 152.
For calendar year 2005 , Title 61 and Title 62 utilities reported gross intrastate
operating revenues from utility operations in Idaho totaling $1 749 327 417. This is a reported
revenue increase of $97 665 602 from the prior year. That is a 5.91% increase. Accordingly, the
Staff determined the proportionate share of each utility s fee should be assessed at .2486%
002486) of each utility s gross intrastate operating revenue. Pursuant to Idaho Code 9 61-
1004(3) the minimum regulatory fee assessed is $50.
DECISION MEMORANDUM
Estimated railroad expenditures for FY 2007 are $133 900. The railroad has an
adjusted carry-over from Fiscal Year 2005 of $19 983. The proportionate share of the
assessment is $113 917. The gross intrastate operating revenue from railroad operations in Idaho
was $15 014 210 for calendar year 2005. This is a decrease of$3 897 887 , down 20.6% from the
prior year. Accordingly, the proportionate share of each railroad's fee is to be assessed at
7587% (.007587) of each railroad's gross intrastate operating revenues. No railroad shall be
assessed less than $50 Idaho Code 9 61-1004(3).
COMMISSION DECISION
1. Does the Commission agree with the Staffs calculation of the regulatory
assessment for utilities of $4 349 152 and for railroads of $113 9177
2. Does the Commission agree with the Staffs calculation of the regulatory
assessment of .2486% (.002486)7
3. Does the Commission agree with the Staffs calculation of the regulatory
assessment of railroads of .7587% (.007587)7
bls/M:2006 Assessment Dee Memojlh
DECISION MEMORANDUM
2006ASS.xls:Calculation
Attachment 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2006 ASSESSMENT
For Fiscal Year 2007
(amounts are in dollars)
1 Allocation of Appropriation
Railroad
133 900.
LESS: Adjustment for Pipeline Safety Program:
Budgeted Expenditures of federal funds for IPSP in FY 2007
Appropriation for Utilities Regulation
Adjustment for actual reimbursement from Federal Pipeline Safety:
Amount deducted from FY06 Total Appropriation for
Federal share of Idaho Pipeline Safety Activities
Actual Cash received from Federal Government to fund
the Pipeline Safety Program (cash collected in Sep05 Mar 06)
ADD: (over-)under reimbursement
lotal
Utilities Appropriation
" "
4,411,400.00 "54~;300;00
68~:~00.
342 900.
69;900:00
63;64If'00
252.
7 Amount of Appropriation after adjustment for federal dollars 133 900.4,349 152.
128 228.883 863.
108 245.939,490.
982.(55 626.94)
Adjustment for Under (OverJ-expended Cash:
Total Cash Collected ,from Companies for Calendar
Year 2004 (Jan 1 2004 to Dec 31 2004) to Fund Fiscal
Year 2005 (Ju11 , 2004 to Jun 30 , 2005)
LESS: Total Cash Expended in FY 2005
10 Adjust for Total under-expended Cash for FY2005
11 Amount Required to Fund Utilities for Fiscal Year 2007 113 917.349 152.
2006ASS,"","oo roo'",
Attachment 2
Apportionment Factor (%)
Calculation
of 2006 Assessment
for FY 2007
Pipeline Safety
Reimbursement Railroad Utilities Totals
(1,400.00)
Change in Gross Intrastate Revenues(GIR)
Reported Gross Intrastate Revenues for 2005Last Year 2004 GIR
Dver(under) last yr
percent increase/(decrease -)
n/a
n/a
014 210.
912;097:00
897 887.00)
20.61 %
749 327,417.
1.651 661,815.
665 601.
91%
764 341 627.
1.670,573,912.34 '
767,714.
Apportionment Factor Calculation
Dver(under) last yr
percent increase/(decrease-)
000861
12.80%
(0.000076)
97%
12 Maximum by Law 010000 003000