20180406Decision_Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELL ANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:MARIA BARRATT-RILEY,FISCAL OFFICER
BRANDON KARPEN,DEPUTY ATTORNEY GENERAL
DATE:APRIL 6,2018
RE:CALCULATING THE 2018 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES,and RAILROADS;CASE NOS.F-2018-1 and F-2018-
2.
SB 1340 appropriated a total of $6,682,600 to the Commission for Fiscal Year (FY)2019.The
total appropriationincludes $6,137,400 from fees assessed on public utilities and railroads;
$325,900 for federal grants;and $219,300 for indirect funds.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.
1.Utilit Assessment.The utilities have a carry-overbalance of $654,300 for FY 2017
expenditures.The calculated assessment for public utilities for FY 2019 is $5,188,200
($5,842,500,less $654,300.00).
For Calendar Year (CY)2017,Title 61 and Title 62 utilities reported gross intrastate
operating revenues totaling approximately $2.38 billion.This is a reported revenue increase
of approximately$119 million (5.3%)from the prior year.The proportionate share for each
utility's regulatory fee is to be assessed at .2179%(.002179)of each utility'sgross intrastate
operating revenue.Pursuant to Idaho Code §§61-1004(2),and (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 utilitybusiness of each such public utility.The minimum
regulatory fee assessed is no less than $50.00
2.Railroad Assessnlent.The railroads have a carry-over balance of $33,000 from FY 2017
expenditures.The calculated assessment for railroads for FY 2019 is $261,900.
For CY 2017 the railroads reported gross intrastate operating revenues of approximately
$26.2 million.This represents a decrease of approximately$435,000 (1.6%)from the prior
year.Accordingly,the proportionateshare for each railroad's fee is to be assessed at .9995%
(.009995)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%)of the gross
operating revenues derived from the intrastate utilitybusiness of each railroad corporation.
The minimum regulatory fee assessed shall be no less than $50.00.
3.M.Idaho Code §61-1004 authorizes the Commission to assess each
pipeline corporation a regulatory fee to recover the Commission's actual time and expense
devoted to the safety supervision and regulation of each pipeline corporation.In no case shall
the fee be less than $50.00.
COMMISSION DECISION
1.Does the Commission agree with the Staffs calculation of the regulatory assessment for the
utilities of $5,188,200 and for railroads of $261,9007
2.Does the Commission agree with the Staffs calculation of the regulatory assessment rate for
the utilities of .2179%(.002179)?
3.Does the Commission agree with the Stafs calculation of the regulatory assessment rate for
the railroads .9995%(.009995)?
Maria Barratt-Riley
Deputy Adminisfrator
DECISION MEMORANDUM -2-
Attachment 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2018 ASSESSMENT
For Fiscal Year 2019
(amounts are in dollars)
Federal Indirect Railroad Utilities Total
Total FY 2019 Appropriaticm 325,900 219,300 294,900 5,842,500 6,682,600
Adjustments:
Subtract FY 2017 year end savings (33,000.00)(654,300.00)(687,300.00)
(net expenses-assessed revenues)
Subtotal:FY 2019 Funding TargetAdjustments (33,000.00)(654,300.00)(687,300.00)
Total FY 2019 Regulatory Programs 325,900 219,300 261,900.00 5,188,200.00 5,995,300.00
Attachment 2
Apportionment Factor (%)
Calculation of 2018 Assessment for FY 2019
Assessments Railroad Utilities Totals
2018 Calculated Total for FY 2019 261,900.00 5,188,200.00 5,450,100.00
2017 Actual Assessment for FY2018 240,200.00 5,145,500.00 5,385,700.00
Change from prior year 21,700.00 42,700.00 64,400.00
percent increasel(decrease)from last year 9.03%0.83%
Gross intrastate Revenues(GIOR)
Reported Gross Intrastate Revenues for CY2017 26,201,800.00 2,381,052,700.00 2,407,254,500.00
Reported Gross Intrastate Revenues for CY2016 26,636,600.00 2,262,045,200.00 2,288,681,800.00
Change from prior year (434,800.00)119,007,500.00 118,572,700.00
percent increasel(decrease)from last year -1.63%5.26%
Apportionment Factor Calculation
2018 Calculated Assessment Rate for FY 2019 0.009995 0.002179
2017 Assessment Rate for FY 2018 0.009018 0.002275
Change from prior year 0.000978 (0.000096)
percent increase/(decrease -)over last years factor 10.84%-4.21%
IMaximumPercentageAllowed by Law 1.0%0.3%
Maximum Percent Express as a decimal 0.010000 0.003000 |