20020416_dh.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
TONYA CLARK
RANDY LOBB
GENE FADNESS
CHRIS ADAMS
FROM:
DAVID HATTAWAY
DATE:
APRIL 15, 2002 RE: CALCULATING THE 2002 REGULATORY FEE ASSESSMENTS FOR PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2002-1 AND F200202

In March of 2002 the Legislature passed House Bill 695 appropriating $4,399,400 to the Commission for Fiscal Year 2003. The total appropriation consists of $137,000 from fees assessed on railroad corporations, $4,207,100 from fees assessed on public utilities and a $55,300 expenditures for pipeline safety activities reimbursable by the federal government.
The utilities have no carry-over balance from Fiscal Year 2002 expenditures. Thus, the Staff calculates that the 2002 assessment for public utilities to fund Fiscal Year 2003 is $4,207,100.
For calendar year 2001, Title 61 and Title 62 utilities reported gross intrastate operating revenues from utility operations in Idaho totaling $1,632,755,563. This is a reported revenue increase of $155,818,652 from the prior year. Accordingly, the Staff determined the proportionate share of each utility’s fee should be assessed at .2577% (.002577) of each utility’s gross intrastate operating revenue. Pursuant to Idaho Code § 61-1004(3) the minimum regulatory fee assessed is $50.

The railroad’s proportionate share is $137,000 with no carry-over from Fiscal Year 2002. The gross intrastate operating revenue from railroad operations in Idaho was $16,767,133 for calendar year 2001. This is a decrease of $6,158,256 from the prior year. Accordingly, the proportionate share of each railroad’s fee is to be assessed at .8171% (.008171) of each railroad’s gross intrastate operating revenues. No railroad shall be assessed less than $50, Idaho Code § 611004(3).
Idaho Code § 61-1003 requires that each utility report its gross intrastate operating revenue no later than April 1st of each year. As of April 11, 2002, there are approximately 140 utilities that have not reported their gross intrastate operating revenues. Most of these are Title 62 companies. The vast majority of these companies pay the $50 minimum regulatory fee.
The Staff intends to send a transmittal letter with the assessment order advising these companies that they still must report their 2001 gross intrastate operating revenues. Failure to report these revenues may result in legal action against these companies. If the delinquent companies report revenues that would result in regulatory fees exceeding the $50 minimum, then the Commission Staff recommends that these accounts be assessed at the current rate and that revenues which exceed the total assessment of $4,207,100 be deducted from the next regulatory assessment.
Commission Decision
Does the Commission agree with the Staff’s calculation of the regulatory assessment for utilities of .2577% (.002577)?
Does the Commission agree with the Staff’s calculation of the regulatory assessment for railroads of .8171% (.008171)?
Does the Commission approve of the Staff’s use of a cover letter advising the companies that have not reported their gross intrastate operating revenues for 2001 that the Commission may take legal action against them for their failure to report?

David Hattaway

vld/M:F-2002-1, F-2002-2_dh

DECISION MEMORANDUM 2