20030415_439.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LO U ANN WESTERFIELD
TONY A CLARK
RANDY LOBB
GENE FADNESS
CHRIS ADAMS
DON HOWELL
DAVID HATTAWAY
APRIL 15, 2003
CALCULATING THE 2003 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2003-1 AND
F -2003-
In March of 2003 the Legislature passed House Bill 345 appropriating $4 539 100 to the
Commission for Fiscal Year 2003. The appropriation was subsequently amended to $4 581 800.
The total appropriation consists of $148 700 from fees assessed on railroad corporations
433 100 from fees assessed on public utilities and $65 400 expenditures for pipeline safety
activities reimbursable by the federal government. Attachment 1 shows the calculations to arrive at
the following amounts. Attachment 2 shows the calculations to arrive at the following rates.
The utilities have an adjusted carry-over balance from Fiscal Year 2002 expenditures of
$265,400 and a deduction of $65 400 for the estimated reimbursement from the federal pipeline
safety program. The latter amount was reduced by $300 difference between last year s estimate and
the actual reimbursement. Thus, the Staff calculates that the 2003 assessment for public utilities to
fund Fiscal Year 2004 is $4 102 700.
For calendar year 2002, Title 61 and Title 62 utilities reported gross intrastate operating
revenues from utility operations in Idaho totaling $1 721 246,414. This is a reported revenue
increase of $88 490 850 up from the prior year by 5.42%. Accordingly, the Staff determined the
proportionate share of each utility s fee should be assessed at .2384% (.002384) of each utility
DECISION MEMORANDUM
gross intrastate operating revenue. Pursuant to Idaho Code 961-1004(3) the minimum regulatory
fee assessed is $50.
Estimated railroad expenditures for FY 2004 are $148 700. The railroad has an adjusted
carry-over from FY2002 of $29,400. The proportionate share of the assessment is $119 300. The
gross intrastate operating revenue from railroad operations in Idaho was $15 254 963 for calendar
year 2002. This is a decrease of $1 512 170, down 9.02% from the prior year. Accordingly, the
proportionate share of each railroad's fee is to be assessed at .7823% (.007823) of each railroad'
gross intrastate operating revenues. No railroad shall be assessed less than $50 Idaho Code
961-1004(3).
Idaho Code 9 61-1003 requires that each utility report its gross intrastate operating
revenue no later than April 1 5t of each year. As of April 14 , 2003 , there are approximately 125
utilities that have not reported their gross intrastate operating revenues. The number of companies
not reporting is down 11% from last year. Of the 125 companies not reporting 32 have been
targeted to show cause why the Commission should 1fot seek to revoke their authority to conduct
business in Idaho. 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 2002 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 $4 102 700 be deducted from the next regulatory
assessment.
Commission Decision
1. Does the Commission agree with staff s calculation of the amount of the regulatory
assessments for utilities of $4 102 700 and for railroads of $119 300?
2. Does the Commission agree with the Staff s calculation of the regulatory assessment
for utilities of .2384% (.002384)?
3. Does the Commission agree with the Staff s calculation of the regulatory assessment
of railroads of .7823% (.007823)?
DECISION MEMORANDUM
4. Does the Commission approve of the Staffs use of a cover letter advising the
companies that have not reported their gross intrastate operating revenues for 2002 that the
Commission may take legal action against them for their failure to report?
5. Does the Commission fmd there is sufficient cause to issue show cause orders to the
32 companies?
DaVi
~~ U
jdhlM:F-2003-, F-2003-
DECISION MEMORANDUM
173 758.282 383.
144 391.017 015.
265 367.46367.
119 332.102 675.
ATTACHMENT 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF ASSESSMENT AMOUNT
For Fiscal Year 2004 i
(amounts are in dollars)
Allocation of Appropriation
Railroad
148 700.
LESS: Adjustment for Pipeline Safety Program:
Budgeted Expenditures of federal funds for IPSP in FY 2004
Adjustment for actual reimbursement from Federal Pipeline Safety:
Amount deducted from FY03 Total Appropriation for
Federal share of Idaho Pipeline Safety Activities
LESS:(over-)under reimbursement
Total of Adjustment
Amount of Appropriation after adjustment for federal dollars 148 700.
Less: Adjustment for Under (Over)-expended Cash:
Total Cash Collected from Companies for Calendar Year
2001 (Jan 1 , 2001 to Dec 31 , 2001) to Fund Fiscal Year 2002 (JuI1
2001 to Jun 30, 2002)
LESS: Total Cash Expended in FY 2002 for utilities program
Total under-expended (over-expended) Cash for FY2002
Amount Required to Fund Utilities for Fiscal Year 2004
Average over two years
Utilities
433 100.
65,400.
300.
957.
343.
057.
368 043.
Total
Appropriation
581 SOO.
ATTACHMENT 2
/assessmenU2003ASS Apportionment Factor (%)
Calculation
FY 2003 Assessment
for FY 2004
Pipeline Safety
Reimbursement Railroad Utilities Totals
Change in Gross Intrastate Revenues(GIR)
4 Reported Gross Intrastate Revenues for 2002Last Year 2001 GIR
over(under) last yr
percent increa5e/(decrease-)
nfa
nfa ~~;i~~:;~~~;~#L
512 170.24)
02%
.i;~~~;1$$;;~~;j$/
88,490 850.
5.42%
. .
!~(3,~g1 37(3:~5
....1;~4~,&44;9~9,49
86,978,680.
Last Year
over(under) last yr
percent increase/(decrease -)
(0.000348)
-4.26%
(0.000193)
7.49%
12 Maximum by Law 010000 003000