20130405Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: MARIA BARRATT-RILEY
DATE: April 8, 2013
RE: CALCULATING THE 2013 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2013-1 AND
F2013-2
On March 21, 2013, Governor Otter signed House Bill 253 which appropriates $5,482,200 to the
Commission for Fiscal Year 2014. The total appropriation includes $5,061,700 from the Public
Utilities Commission Fund (fees assessed on public utilities and railroad corporations); $221,300
from the American Reinvestment Fund; and $199,200 for other federal grants (including pipeline
safety activities). Attachment 1 shows the calculations to arrive at the amounts to be collected.
Attachment 2 shows the calculations to arrive at the assessment for utilities and railroads,
respectively.
1.Utility Assessment. The utilities have an adjusted carry-over balance of $297,300 from
Fiscal Year 2012 Expenditures. The calculated 2013 assessment for public utilities to
fund Fiscal Year 2014 is $4,648,000.
For calendar year 2012, Title 61 and Title 62 utilities reported gross intrastate operating
revenues from utility operations in Idaho totaled approximately $2,062,636,800. This is a
reported revenue increase of approximately $44.9 million (2.2%) from the prior year. The
proportionate share of each utility's fee is to be assessed at .2253% (.002253) of each
utility's gross intrastate operating revenue. Pursuant to Idaho Code § 61-1004(3) the
minimum regulatory fee assessed is $50.00
2.Railroad Assessment. The railroads have an adjusted carry-over balance of $2,700 from
Fiscal Year 2012 Expenditures. The calculated 2013 assessment for railroads to fund
Fiscal Year 2014 is $113,700.
For calendar year 2012, rail road operations in Idaho reported gross intrastate operating
revenues of approximately $18,474,800. This is an increase of approximately $4.5
million (32.5%) from the prior year. Accordingly, the proportionate share of each
railroad's fee is to be assessed at .6154% (.006 154) of each railroad's gross intrastate
DECISION MEMORANDUM -1-
operating revenues. Pursuant to Idaho Code § 61-1004(3) the minimum regulatory fee
assessed is $50.00.
COMMISSION DECISION
1.Does the Commission agree with the Staff's calculation of the regulatory assessment
for the utilities of $4,648,000 and for railroads of $113,700
2.Does the Commission agree with the Staff's calculation of the regulatory assessment
rate for the utilities of .2253% (.002253)?
3.Does the Commission agree with the Staff's calculation of the regulatory assessment
rate for the railroads .6154% (.006154)?
Maria iratt-Riley 6
Deputy Administrator
DECISION MEMORANDUM -2-
Attachment I
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2012 ASSESSMENT
For Fiscal Year 2014
(amounts are in dollars)

Federal ARRA Grant Railroad Utilities Total..
Total .FY 2014 Appropriation 199200 221.300 116,400 4,945300 5.482,200
Adjustments:
Subtract FY 2012 year end savings
(net expenses- assessed revenues) (2,700.00) (297,300.00)
Subtotal: FY 2014 Funding Target 113,700.00 4,648,000.00
One-time adjustment to reduce prudent reserve - -
Total FY 2014 Regulatory Programs 113,70000 4,648,000 00
Attachment 2
Apportionment Factor (%)
Calculation of 2013 Assessment for FY 2014
Assessments Railroad Utilities Totals
2013 Calculated Total 113,700.00 4,b4,UU0.UU 'IIOt,(UU.UU
2012 Actual Assessment 116,400.00 4,720,400.00 4,836,800.00
Change from prior year (2,700.00) (72,400.00) (75,100.00)
percent increase/(decrease) from last year -2.32% -1.53%
Gross Intrastate Revenues(GIOR) I
Reported Gross Intrastate Revenues for CY2012 18,474,771.45 2,Ub1,bb,lS41.bi Z,Oøi,iii 3Oh).
Reported Gross Intrastate Revenues for CY2011 13,945,024.23 2,017,733,364.43 2,031,678,388.66
Change from prior year 4,529,747.22 44,903,477.40 49,433,224.62
percent increase/(decrease) from last year 32.48% 2.23%
Apportionment Factor Calculation
KW
2013 Calculated Assessment Rate 0.006154 0.002253
2012 Assessment Rate 0.008347 0.002297
Change from prior year (0.002193) (0.000044)
percent increase/(decrease -) over last years factor -26.27% -1.92%
Maximum Percentage Allowed by Law 1.0% 0.3%
Maximum Percent Express as a decimal 0.010000 0.003000
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