20090413_2533.pdf

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DECISION MEMORANDUM
TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMSSION STAFF
LEGAL
FROM: DON HOWELL
DAVID HATTAWAY
DATE: APRIL 13,2009
RE: CALCULATING THE 2009 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2009-1 AND F-2009-2
In April 2009, the Legislatue passed Senate Bil 1188 appropriating $4,962,200 to
the Commission for Fiscal Year 2010 operations. The tota appropriation consists of $151,400
from fees assessed on railroad corporations; $4,741,600 from fees assessed on public utilities;
and $69,200 expenditues for pipeline safety activities reimbursable by the federal governent.
Attachment 1 shows the calculations to arive at the budget amounts. Attachment 2 shows the
calculations to arve at the assessments for utilities and railroads, respectively.
1. Utilty Assessment. The utilties have an adjusted car-over balance of $290,753
from Fiscal Year 2008 expenditues. However, a true up of $5,262 is added for the difference
between last year's estimated federal pipeline safety reimbursement and the actual dollars
received. The Staff also recommend a one-time reduction to the assessment of $1 ,000,000 from
the cash reserve. Staffs analysis of the reserve shows this reduction is prudent at ths time.
Thus, the Sta calculates that the 2010 assessment for public utilities to fud Fiscal Year 2010 is
$3,456,109.
For calendar year 2008, Title 61 and Title 62 utilities reported gross intrastate
operating revenues from utility operations in Idaho totaling $2,078,901,798. This is a reported
revenue increase of $184,374,554 from the prior year, or a 9.73% increase. Accordingly, the
Staff determined the proportionate share of each utility's fee should be assessed at .1662%
DECISION MEMORANDUM 1
(.001662) of each utility's gross intrastate operating revenue. Pursuant to Idaho Code § 61-
1004(3) the minimum regulatory fee assessed is $50.
2. Railroad Assessment. Estimated railroad expenditures for FY 2010 are $151,400.
The railroad account has an adjusted overfudig from Fiscal Year 2008 of ($4,645) and a Staff-
recommended one-time fud adjustment of ($12,000). Thus, the proportionate share of the
assessment is $134,755. The gross intrastate operating revenue from railroad operations in Idaho
was $17,180,779 for calendar year 2008. This is an increase of$2,508,231, up 17.09% from the
prior year. Accordingly, the proportionate share of each railroad's fee is to be assessed at
.7843% (.007843) of each railroad's gross intrastate operating revenues. No railroad shall be
assessed less than $50, Idaho Code § 61-1004(3).
COMMISSION DECISION
1. Does the Commission agree with the Staff s calculation of the reguatory
assessment for utilities of $3,456,109 and for railroads of$134,755?
2. Does the. Commission agree with the Staffs calculation of the regulatory
assessment of utilities of .1662% (.001662)?
3. Does the Commission agree with the Stas calculation of the regulatory
assessment of railroads of .7843% (.007843)?
blslM:2009 Assessment Dec Memo_dhjdh
DECISION MEMORADUM 2
2009ASS.xls:Calculation
Attchment 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2009 ASSESSMENT
For Fiscal Year 201 0
(amount are in dollars)
1 Allocation of Appropriation
LESS: Adjustment for Pipeline Safety Program:
2 Budgeted Expenditures of federal funds for IPSP in FY 2010
3 Subtotal: Appropriation for Utilties Regulation
Adjustment for actual reimbursement from Federal Pipeline SafetyFPS):
Amount deducted from FY09 Total Appropriation for
4 Federal share of Idaho Pipeline Safety Activities
Actual Cash received from Federal Government to fund
5 the Pipeline Safety Program (cash collected in Sep06 Mar 07)
6 Subtotal: (over-)under reimbursement by FPS
7 Subtotal: Amt of Appropriation after adjustment for FPS Reimbursement
Adjustment for Under (Over)-expended Cash:
Total Cash Collected from Companies:
Amount collected in Calendar Year 2007 (Jan 1,2007 to Dec 31,2007)
8 to fund Fiscal Year 2008 (JuI1, 2007 to Jun 30, 2008)
9 LESS: Total Cash Expended in FY 2008
10 Subtotal: Adjust for Total (under)-over expended Cash for FY200B
11 LESS: One-time adjustment
12 TOTAL: Amount Required to Fund Utilities for Fiscal Year 2010
Railroad
151,40mOO.
Utilties
4,810,800.00
4,741,600.00
5,262.00
151,400.00 4,746,862.00
184,979.00 4,504,288.00
180,334.00 4,213,535.00
4,645.00 290,753.00
12,000.00 1,000,000.00
134,755.00 3,456,109.00
Total
Appropriatign
4~962¡,2ØO~OøiW
20SS.x1s:a11o fact,
Attchment 2
Apportionment Factor (%)
Calculation
of 2009 Assessment
forFY2010
Pipeline Safety
Reimbursement Railroad Utilties Totals
1
2
3
Last Year 2008 assessment
over(under) last year's collection
71,900.00
(2,700.00)
Change in Gross Intrastate Revenues(GIR)
4 Reported Gross Intrastate Revenues for 20085 Last Year 2007 GIR
6 over(under) last year
7 percent increase/(decrease) frm last year
nfa
nfa
118,011.00
16,744.00
17,180,779.00
14,672,548.00
2,508,231.00
17.09%
4,748,640.00
(1,292,531.00)
2,078,901,798.11
1,894,527,244.20
184,374,553.91
9.73%
2,096,082,577.11
1,909,199,792.20
186,882,784.91
8
9
10
11
Last Year
over(under) last year
percent increase/( decrease -) over last years factor
0.008043
(0.000200)
-2.49%
0.002507
(0.000845)
-33.71%
12 Maximum Percentage Allowed by Law
Maximum Percent Ex ress as a decimal
1.0%
0.010000
0.3%
0.003000