20160407Decision_Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPPER
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:MARIA BARRATT-RILEY,FISCAL OFFICER
DATE:April 7,2016
RE:CALCULATING THE 2016 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES,and RAILROADS;CASE NOS.F-2016-1 and F-2016-
2.
RB 548 and RB 575 appropriated a total of $6,327,000 to the Commission for fiscal Year (FY)
2017.The total appropriation includes $5,902,700 from fees assessed on public utilities andrailroads;$324,300 for federal grants;and $100,000 for indirect funds.Attachment I shows thecalculationstoarriveattheamountstobecollected.Attachment 2 shows the calculations to
arrive at the assessment for utilities and railroads,respectively.
1.Utility Assessment.The utilities have a carry-over balance of $562,500 for fY 2015
expenditures,as well as a one-time adjustment of $1,000,000.The calculated assessment for
public utilities for fiscal Year 2017 is $4,275,100 ($5,837,600 less $1,562,500).
for Calendar Year (CY)2015,Title 61 and Title 62 utilities reported gross intrastate
operating revenues of approximately $2,277,958,000.00.This is a reported revenue increase
of approximately $11.5 million (less than 1%)from the prior year.The proportionate share
for each utility’s regulatory fee is to be assessed at .1877%(.001877)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 have a carry-over balance of $6,300 from fY 2015expenditures.The calculated assessment for railroads for fY 2017 is $58,800.
for CY 2015 the railroads reported gross intrastate operating revenues of approximately
$26,325,000.This is an increase of approximately $2.8 million (12%)from the prior year.
Accordingly,the proportionate share for each railroad’s fee is to be assessed at .2234%
(.002234)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 exceed one percent (1%)of the
DECISION MEMORANDUM -1-
gross operating revenues derived from the intrastate utility business of each railroadcorporationandtheminimumregulatoryfeeassessedshallbenolessthan$50.00.
3.Pipeline Assessment.Idaho Code §61-1004 authorizes the Commission to assess eachpipelinecorporationaregulatoryfeetorecovertheCommission’s actual time and expensedevotedtothesafetysupervisionandregulationofeachpipelinecorporation.In no case shallthefeebelessthan$50.00.Last year,the Commission approved fiscal’s procedure formonthlyrecoveryoftheseactualexpenditures.
COMMISSION DECISION
1.Does the Commission agree with the Staffs calculation of the regulatory assessment for theutilitiesof$4,275,100 and for railroads of $58,800?
2.Does the Commission agree with the Staffs calculation of the regulatory assessment rate fortheutilitiesof.1877%(.001877)?
3.Does the Commission agree with the Staffs calculation of the regulatory assessment rate fortherailroads.2234%(.002234)?
DECISION MEMORANDUM -2-
Attachment I
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2016 ASSESSMENT
For Fiscal Year 2017
(amounts are in dollars)
Federal Indirect Railroad Utilities TotalTotalFY2017Appropriation324,300 100,000 65,100 5,837,600 6,327,000
Adjustments:
Subtract FY 2015 year end savings
(net expenses-assessed revenues)(6,300.00)(562,500.00)(568,800.00)Free Fund Adjustment (1,000,000.00)(1,000,000.00)Subtotal:FY 2077 Funding Target Adjustments (6,300.00)(1,562,500.00)(1,568,800.00)
Total FY 2017 Regulatory Programs 324,300 100,000 58,800.00 4,275,100.00 4,758,200.00
Attachment 2
Apportionment Factor (¾)
Calculation of 2016 Assessment for FY 2017
Assessments Railroad Utilities Totals
2016 Calculated Total for FY 2017 58,800.00 4,275,100.00 4,333,900.002015ActualAssessmentforFY2O16143,000.00 5,623,500.00 5,766,500.00Changefromprioryear(84,200.00)(1,348,400.00)(1,432,600.00)percent increase/(decrease)from last year -58.88%-23.98%
Gross Intrastate Revenues(GIOR)
Reported Gross Intrastate Revenues for CY201 5 26,324,893.71 2,277,958,157.73 2,304,283,051 .44ReportedGrossIntrastateRevenuesforCY201423,508,879.50 2,266,423,848.25 2,289,932,727.75Changefromprioryear2,816,014.21 11,534,309.48 14,350,323.69percentincrease/(decrease)from last year 1 1.98%0.51%
Apportionment Factor Calculation
2016 Calculated Assessment Rate for FY 2017 0.002234 0.001877
2015 Assessment Rate for FY 2016 0.006083 0.002481
Change from prior year (0.003849)(0.000604)percent increasel(decrease -)over last years factor -63.28%-24.35%
Maximum Percentage Allowed by Law 1.0%0.3%Maximum Percent Express as a decimal 0.010000 0.003000