20080414Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DON HOWELL
DAVID HATTAWAY
DATE:APRIL 14 2008
RE:CALCULATING THE 2008 REGULA TORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2008-1 AND F-2008-
In March 2008 the Legislature passed Senate Bill 1487 and Senate Bill 1439
appropriating $5 261 300 to the Commission for Fiscal Year 2009 operations. The total
appropriation consists of $136 000 from fees assessed on railroad corporations , $5 053 400 from
fees assessed on public utilities and $71 900 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 have an adjusted carry-over balance of $302 510 from Fiscal Year 2007
expenditures. However, a true up of ($2 250) is added for the difference between last year
estimated federal reimbursement and the actual dollars received. Thus, the Staff calculates that
the 2009 assessment for public utilities to fund Fiscal Year 2009 is $4 748 640.
For calendar year 2007, Title 61 and Title 62 utilities reported gross intrastate
operating revenues from utility operations in Idaho totaling $1 894 527 244. This is a reported
revenue increase of$91 269 291 from the prior year. That is a 5.06% increase. Accordingly, the
Staff determined the proportionate share of each utility s fee should be assessed at .2507%
002507) of each utility's gross intrastate operating revenue. Pursuant to Idaho Code 961-
1004(3) the minimum regulatory fee assessed is $50.
DECISION MEMORANDUM
Estimated railroad expenditures for FY 2009 are $136 000. The railroad has an
adjusted underfunding from Fiscal Year 2007 of $14 011 and a one-time fund adjustment of
($32 000). The proportionate share of the assessment is $118 011. The gross intrastate operating
revenue from railroad operations in Idaho was $14 672 548 for calendar year 2007. This is an
increase of $600,745 , up 4.27% from the prior year. Accordingly, the proportionate share of
each railroad's fee is to be assessed at .8043% (.008043) 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 $4 748 640 and for railroads of$118 011?
2. Does the Commission agree with the Staffs calculation of the regulatory
assessment of utilities of .2507% (.002507)?
3. Does the Commission agree with the Staffs calculation of the regulatory
assessment of railroads of .8043% (.008043)?
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DECISION MEMORANDUM
200BASS.xls:Calculation
Attachment 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2008 ASSESSMENT
For Fiscal Year 2009
(amounts are in dollars)
1 Allocation of Appropriation
Railroad
136 000.
LESS: Adjustment for Pipeline Safety Program:
Budgeted Expenditures of federal funds for IPSP in FY 2009
Appropriation for Utilities Regulation
Adjustment for actual reimbursement from Federal Pipeline Safety:
Amount deducted from FY08 1'.otal Appropriation for
Federal share of Idaho Pipeline Safety Activities
Actual Cash received from Federal Government to fund
the Pipeline Safety Program (cash collected in Sep06 Mar 07)
ADD: (over-)under reimbursement
Utilities
125 300.
71,900.
053,400.
63;700.
950.
250.00)
7 Amount of Appropriation after adjustment for federal dollars 136 000.
162 019.327 285.
176 030.024 775.
(14 011.00)302 510.
000.
118,011.748 640.
Adjustment for Under (Over)-expended Cash:
Total Cash Collected from Companies:
Amount collected in Calendar Year 2006 (Jan 1 , 2006 to Dec 31 , 2006)
to fund Fiscal Year 2007 (JuI1 , 2006 to Jun 30, 2007)
LESS: Total Cash Expended in FY 2007
10 less: Adjust for Total (under)-over expended Cash for FY2007
11 Less: one-time fund adjustment
11 Amount Required to Fund Utilities for Fiscal Year 2009
051 150.
Total
Appropriation
261 300.
2008ASS,,',.I~c r.cl,,'
Attachment 2
Apportionment Factor
(%)
Calculation
of 2008 Assessment
for FY 2009
Pipeline Safety
Reimbursement Railroad Utilities Totals
2007 assessment '
over(under) last yrs collection
...4A$Z;Qq'MQ
256 586.
...
9P~;Qt7\PQ..
275 534.
Change in Gross Intrastate Revenues(GIR)
Reported Gross Intrastate Revenues for 2007Last Year 2006 GIR
over(under) last yr
percent increase/(decrease-)
n/a
n/a ~4;~i~;~d~;gg)
600 745.
27%
/1;~;:;~;i;~:~:~~(
269 291.
06%
1 ,909, 199 ?~2.20 ,
...
1,!t1j\;32Q;Y$q:wr
870 036.
Last Year
over(under) last yr
percent increase/(decrease-)
000420
51%
000016
64%
12 Maximum by Law 010000 003000