20200414Decision Memo.pdf

DECISION MEMORANDUM -1-

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
ADAM RUSH
STEVEN GOODSON
LEGAL
WORKING FILE

FROM: MARIA BARRATT-RILEY, EXECUTIVE DIRECTOR

DATE: APRIL 10, 2020

RE: CALCULATING THE 2020 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES, and RAILROADS; CASE NOS. F-2020-1 and F-2020-
2.

In March 2020, the Idaho Legislature passed and the Governor signed SB 1361 appropriating a
total of $6,554,200 to the Commission for Fiscal Year (FY) 2021. The total appropriation
includes $5,998,300 from fees assessed on public utilities and railroads; $336,600 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. Utility Assessment. The FY 2019 appropriation bill (SB 1161) included carry forward
language for any unexpended funds into FY 2020 resulting in zero reversions to be deducted
from the calculated target. The calculated assessment for public utilities for FY 2021 is
$5,804,115.

For Calendar Year (CY) 2019, Title 61 and Title 62 utilities reported gross intrastate
operating revenues totaling approximately $2.2 billion. This is a reported revenue decrease of
approximately $56.9 million (2.5%) from the prior year. The proportionate share for each
utility’s regulatory fee is to be assessed at .2593% (.002593) of each utility’s gross intrastate
operating revenue. Pursuant to Idaho Code § 61-1004(2) 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. Pursuant to Idaho Code § 61-
1004(4) the minimum regulatory fee assessed shall be no less than $50.00.

2. Railroad Assessment. The railroads did not have a carry-over balance from FY 2019
expenditures. The calculated assessment for railroads for FY 2021 is $194,185

DECISION MEMORANDUM -2-
For CY 2019 the railroads reported gross intrastate operating revenues of approximately
$19.4 million. This represents a decrease of approximately $4.9 million (20.0%) from the
prior year. Accordingly, the proportionate share for each railroad’s fee is to be assessed at
.9999% (.009999) of each railroad’s gross intrastate operating revenues. Pursuant to Idaho
Code §61-1004(1) the maximum fee payable shall not exceed one percent (1%) of the gross
operating revenues derived from the intrastate utility business of each railroad corporation.
Pursuant to Idaho Code § 61-1004(4) the minimum regulatory fee assessed shall be no less
than $50.00.

3. Pipeline Assessment. Idaho Code § 61-1004(3) 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. Idaho Code § 61-1004(4).

COMMISSION DECISION
1. Does the Commission agree with the Staff’s calculation of the regulatory assessment for the
utilities of $5,804,115 and for railroads of $194,185?

2. Does the Commission agree with the Staff’s calculation of the regulatory assessment rate for
the utilities of .2593%?

3. Does the Commission agree with the Staff’s calculation of the regulatory assessment rate for
the railroads of .9999%?

Maria Barratt-Riley
Maria Barratt-Riley
Executive Director

Attachment 1
Federal Indirect Railroad Utilities Total
Total FY 2021 Appropriation 336,600 219,300 194,185 5,804,115 6,554,200
Adjustments:
Subtract FY 2019 year end savings - - -
(net expenses- assessed revenues)
Subtotal: FY 2021 Funding Target Adjustments 194,185.00 5,804,115.00 5,998,300.00
Total FY 2021 Regulatory Programs 336,600 219,300 194,185.00 5,804,115.00 6,554,200.00
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2020 ASSESSMENT
For Fiscal Year 2021
(amounts are in dollars)
Attachment 2
Assessments Railroad Utilities Totals
2020 Calculated Total for FY 2021 194,185.00 5,804,115.00 5,998,300.00
2019 Actual Assessment for FY 2020 242,800.00 5,804,700.00 6,047,500.00
Change from prior year (48,615.00) (585.00) (49,200.00)
percent increase/(decrease) from last year -20.02% -0.01%
Gross Intrastate Revenues(GIOR)
Reported Gross Intrastate Revenues for CY2019 19,420,100.00 2,238,021,700.00 2,257,441,800.00
Reported Gross Intrastate Revenues for CY2018 24,289,300.00 2,294,894,900.00 2,319,184,200.00
Change from prior year (4,869,200.00) (56,873,200.00) (61,742,400.00)
percent increase/(decrease) from last year -20.05% -2.48%
Apportionment Factor Calculation
2020 Calculated Assessment Rate for FY 2021 0.009999 0.002593
2019 Assessment Rate for FY 2020 0.009996 0.002529
Change from prior year 0.000003 0.000064
percent increase/(decrease -) over last years factor 0.03% 2.53%
Maximum Percentage Allowed by Law 1.0% 0.3%
Maximum Percent Express as a decimal 0.010000 0.003000
Apportionment Factor (%)
Calculation of 2020 Assessment for FY 2021