20170406Decision_Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORIUNG FILE
FROM:MARIA BARRATT-RILEY,FISCAL OFFICER
BRANDON KARPEN,DEPUTY ATTORNEY GENERAL
DATE:APRIL 6,2017
RE:CALCULATING THE 2017 REGULATORY FEE ASSESSMENTS FORPUBLICUTILITIES,and RAILROADS;CASE NOS.F-2017-1 and F-2017-2.
SB 1132 and NB 303 appropriated a total of $6,572,800 to the Commission for Fiscal Year (FY)2018.The total appropriation includes $6,039,300 from fees assessed on public utilities andrailroads;$324,000 for federal grants;and $209,500 for indirect funds.Attachment I shows thecalculationstoarriveattheamountstobecollected.Attachment 2 shows the calculations toarriveattheassessmentforutilitiesandrailroads.
1.Utility Assessment.The utilities have a carry-over balance of $624,400 for FY 2016expenditures.The calculated assessment for public utilities for FY 201$is $5,145,500($5,769,900,less $624,400.00).
For Calendar Year (CY)2016,Title 61 and Title 62 utilities reported gross intrastateoperatingrevenuestotalingapproximately$2.26 billion.This is a reported revenue decreaseofapproximately$15.9 million (less than 1%)from the prior year.The proportionate shareforeachutility’s regulatory fee is to be assessed at .2275%(.002275)of each utility’s gross
intrastate operating revenue.Pursuant to Idaho Code §61-1004(2),and (4)the maximumfeepayableshallnotexceedthree-tenths (3/10)of one percent (1%)of the gross operatingrevenuesderivedfromtheintrastateutilitybusinessofeachsuchpublicutility.Theminimumregulatoryfeeassessedisnolessthan$50.00
2.Railroad Assessment.The railroads have a carry-over balance of $29,200 from FY 2016expenditures.The calculated assessment for railroads for FY 2018 is $240,200.
For CY 2016 the railroads reported gross intrastate operating revenues of approximately$26,640,000.This is an increase of approximately $300,000 (1.2%)from the prior year.Accordingly,the proportionate share for each railroad’s fee is to be assessed at .9018%
(.009018)of each railroad’s gross intrastate operating revenues.Pursuant to Idaho Code §
DECISION MEMORANDUM -1-
61-1004(1),and (4)the maximum fee payable shall not exceed one percent (1%)ofthe grossoperatingrevenuesderivedfromtheintrastateutilitybusinessofeachrailroadcorporation.The minimum regulatory fee assessed shall be no less than $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.
COMM1SSION DECISION
1.Does the Commission agree with the Staffs calculation of the regulatory assessment for theutilitiesof$5,145,500 and for railroads of $240,200?
2.Does the Commission agree with the Staffs calculation of the regulatory assessment rate fortheutilitiesof.2275%(.002275)?
3.Does the Commission agree with the Staffs calculation of the regulatory assessment rate fortherailroads.9018%(.009018)?
Maria B -Riley
Fiscal Officer
DECISION MEMORANDUM -2-
Attachment 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2017 ASSESSMENT
For FIscal Year 2018
(amounts are in dollars)
Federal Indirect Railroad Utilities TotalTotalFY2018ApproprIation324,000 209,500 269,400 5,769,900 6,572,800
Adjustments:
Subtract FY 2016 year end savings (29,200.00)(624,400.00)(653,600.00)(net expenses-assessed revenues)
Free Fund Adjustment
______________________________________________
Subtotal:FYEO18 Funding Target Adjustments (29,200.00)(624,400.00)(653,600.00)
Total FY 2078 Regulatory Programs 324,000 209,500 240,200.00 5,745,500.00 5,919,200.00
-,
Attachment 2
Apportionment Factor (¾)
Calculation of 2017 Assessment for FY 2018
jAssessments Railroad Utilities Totals
2017 Calculated Total for FY 2018 240,200.00 5,145,500.00 5,385,700.002016ActualAssessmentforFY2O1758,800.00 4,275,100.00 4,333,900.00Changefromprioryear181,400.00 870,400.00 1,051,800.00percentincreasel(decrease)from Iat year 308.50%20.36%
JGross intrastate Revenues(G1OR)
Reported Gross Intrastate Revenues for CY2O1 6 26,636,600.00 2,262,045,200.00 2,288,681,800.00ReportedGrossIntrastateRevenuesforCY201526,324,900.00 2,277,958,200.00 2,304,283,100.00Changefromprioryear311,700.00 (15,913,000.00)(15,601,300.00)percent increaso/(decrease)from last year 1.18%-0.70%
Apportionment Factor Calculation
2017 Calculated Assessment Rate for FY 2018 0.009018 0.0022752016AssessmentRateforFY20170.002234 0.001877Changefromprioryear0.006764 0.000398percentincrease/(decrease -)over last years factor 303.66%21.19%
Maximum Percentage Allowed by Law 1.0%0.3%Maximum Percent Express as a decimal 0,010000 0.003000