20140414Decision Memo.pdf

DECISION MEMORAN]MJM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:MARIA BARRATT-RILEY
DATE:April 14,2014
RE:CALCULATING THE 2014 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS,CASE NOS.F-2014-1,F2014-2
and F-2014-3.
HB 554 and SB 1429 appropriated a total of $5,815,200 to the Commission for Fiscal Year 2015.
The total appropriation includes $5,595,600 from fees assessed on public utilities and railroad
corporations;$179,600 for federal grants,and $40,000 for indirect funds.Attachment I 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.ji Asses &ft.The utilities do not have any carry-over balance from Fiscal Year
2013 Expenditures.The calculated 2014 assessment for public utilities for Fiscal Year
2015 is $5,420,200 ($5,595,600-$175,400).
For calendar year 2013,Title 61 and Title 62 utilities reported gross intrastate operating
revenues of approximately $2,286,100,000.This is a reported revenue increase of
approximately $223.4 million (10.8%)from the prior year.The proportionate share for
each utility’s regulatory fee is to be assessed at .2371%(.002371)of each utility’s gross
intrastate operating revenue.Pursuant to Idaho Code §61-1004(2)and 61-1004(4)the
maximum fee payable shall not exceed three-tenths (3/10)of one percent (1%)of the
gross operating revenues derived from the intrastate utility business of each such public
utility and the minimum regulatory fee assessed is no less than $50.00
2.Railroad Assessment.The railroads do not have any carry-over balance from Fiscal Year
2013 Expenditures.The calculated 2014 assessment for railroads for Fiscal Year 2015 is
$175,400.
For calendar year 2013,the railroads reported gross intrastate operating revenues of
approximately $32,926,800.This is an increase of approximately $14.5 million (78.2%)
from the prior year.Accordingly,the proportionate share for each railroad’s fee is to be
assessed at .5327%(.005327)of each railroad’s gross intrastate operating revenues.
Pursuant to Idaho Code §61-1004(1)and 61-1004(4)the maximum fee payable shall not
DECISION MEMORANDUM -1-
exceed one percent (1%)of the gross operating revenues derived from the intrastate
utility business of each railroad corporation and the minimum regulatory fee assessed is
no less than $50.00
3.Pipeline Assessment.In 2013 the Legislature amended Idaho Code §61-1004 regarding
regulatory fees associated with the safety supervision and regulation of each pipeline
corporation.The Commission is authorized to assess each pipeline corporation a
regulatory fee to recover the Commission’s time and expense devoted to the safety
supervision and regulation of each pipeline corporation.In no case shall the fee be less
than fifty dollars ($50.00).
For calendar year 2014,each pipeline corporation shall be assessed $50.00.
COMMISSION DECISION
1.Does the Commission agree with the Staff’s calculation of the regulatory assessment
for the utilities of $5,420,200 and for railroads of $175,400?
2.Does the Commission agree with the Staff’s calculation of the regulatory assessment
rate for the utilities of .2371%(.00237 1)?
3.Does the Commission agree with the Staff’s calculation of the regulatory assessment
rate for the railroads .5327%(.005327)?
4.Does the Commission agree with the Staff’s calculation of the regulatory assessment
fee of $50 for each pipeline corporations?
Deputy Administrator
DECISION MEMORANDUM
Attachment I
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2014 ASSESSMENT
For Fiscal Year 2015
(amounts are in dollars)
Federal Indirect Railroad Utilities Total
Total FY 2015 AppropriatIon 179.600 40000 175400 5420,200 5,815,200
Adjustments:
Subtract FY 2013 year end savings
(net expenses-assessed revenues)---
Subtotal:FY 2015 Funding Target 175,400.00 5,420,200.00 5,595,600.00
Total FY 2015 Regulatory Programs 175,400.00 5,420,200.00 5,595,600.00
Attachment 2
Apportionment Factor (%)
Calculation of 2014 Assessment for FY 2015
1Assessments Railroad Utilities Totalsj
2014 Calculated Total 17540000 5,420200,00 5,595,600.00
201 3 Actual Assessment 1 1 3,700.00 4,648,000.00 4,761,700.00
Change from prior year 61700.00 772,200.00 833,900.00
percent increase/(decrease)from last year 54.27%16.61%
Gross Intrastate Revenues(GIOR)
Reported Gross Intrastate Revenues for CY2O1 3 32,926,804.50 2,286,052,142.02 2,318,978,946.52
Reported Gross Intrastate Revenues for CY2012 18,474,771 .45 2,062,636,841.83 2,081,111,613.28
Change from prior year 14,452,033.05 223,415,300.19 237,867,333.24
percent increase/(decrease)from last year 78.23%10.83%
Apportionment Factor Calculation
2014 Calculated Assessment Rate 0.005327 0,002371
2013 Assessment Rate 0.006 154 0.002253
Change from prior year (0.000827)0.000118
percent increase/(decrease -)over last years factor -13.44%5.22%
Maximum Percentage Allowed by Law 1.0%0.3%
Maximum Percent Express as a decimal 0.01 0000 0.003000