20120416_3674.pdf

DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
FROM: DON HOWELL, DAG
DAVID HATTA WAY
DATE: APRIL 13,2012
SUBJECT: CALCULATING THE 2012 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2012-1 AND F-
2012-2
In April 2012, the Legislature passed and the Governor signed House Bill No. 674
appropriating $5,255,900 to the Commission for Fiscal Year 2013 operations.' The total
appropriation consists of $4,789,800 from fees assessed on public utilities; $127,000 from fees
assessed on railroad corporations; $220,400 expenditures for the American Recovery and
Reinvestment Act reimbursed by the federal government; and $118,700 expenditures for the
pipeline safety activities also reimbursed by the federal government. 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, respectively.
1. Utility Assessment. The utilities have an adjusted carry-over balance of $69,382
from Fiscal Year 2011 Expenditures. Thus, Staff calculates that the 2012 assessment for public
utilities to fund Fiscal Year 2013 is $4,720,418.
For calendar year 2011, Title 61 and Title 62 utilities reported gross intrastate
operating revenues from utility operations in Idaho totaling $2,017,430,934. This is a reported
revenue decrease of $7,655,156 from the prior year, or a -0.38 percent decrease. Accordingly,
Staff determined the proportionate share of each utility's fee should be assessed at .2340%
(.002340) of each utility's gross intrastate operating revenue. Pursuant to Idaho Code §§ 61-
1004(3) and 62-611 the minimum regulatory fee assessed per utility is $50.00.
This amount includes the 2% salary increase for employees and Commissioners.
DECISION MEMORANDUM 1
2. Railroad Assessment. The railroads have an adjusted carry-over balance of
$10,629 from Fiscal Year 2011 Expenditures. Thus, Staff calculates the 2012 assessment for
railroads to fund Fiscal Year 2013 as $116,371.
The gross intrastate operating revenues from railroad operations in Idaho were
$13,920,986 for calendar year 2011. This is an increase of $2,264,365, up 19.43% from the prior
year. Accordingly, the proportionate share of each railroad's fee is to be assessed at .8359%
(.008359) of each railroad's gross intrastate operating revenues. No railroad shall be assessed
less than $50, pursuant to Idaho Code § 61-1004(3).
COMMISSION DECISION
1.Does the Commission agree with Staff's calculation of the regulatory assessment
for the utilities of $4,720,418 and for railroads of $116,371?
2.Does the Commission agree with Staff's calculation of the regulatory assessment
rate for the utilities of .2340% (.002340)?
3.Does the Commission agree with Staff's calculation of the regulatory assessment
rate for the railroads .8359% (.008359)?
JIAØI44
J. David Hattaway
M:2012 Assessment dhjdh
DECISION MEMORANDUM 2
20I2ASS.xlsx:Calculation
1 Allocation of Appropriation for FY 2013
Attachment I
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2012 ASSESSMENT
For Fiscal Year 2013
(amounts are in dollars)
Federal Share of
Pipeline Safety ARRA Grant
118,700.00 220,400.00
Total
Railroad Utilities Appropriation
12700000 478980000 5,1256,900m
Adjustment for (Under)/Over-expended Cash:
Total Cash Collected from Companies:
Amount collected in Calendar Year 2010 (Jan 1, 2010 to Dec 31, 2010)
2 to fund Fiscal Year 2011 (Jul 1, 2010 to Jun 30, 2011)
3 Total Cash Expended in FY 2011
4 Subtotal: Adjust for Total (under) -over expended Cash for FY20 I I
5 One-time adjustment to reduce prudent reserve
6 TOTAL: Amount Required to Fund Utilities for Fiscal Year 2013

(133,266.00) (4,307,939.00)

122,636.75 4,238,557.33

(10,629.25) (69,381.67) line 2+3

116,370.75 4,720,418.33 line I + 4 + 5
2012ASS4xIoc fcIor
Attachment 2
Apportionment Factor (%)
Calculation
of 2012 Assessment
for FY 2013
Federal Share of Pipeline
Safety ARRA Grant Railroad Utilities Totals
Assessment Due I
I ArnountIl
2 Last Year 2011 assessment 101 90000 20400 00 1i6 50000 4 51 71iUOO 5090500 00
3 over(under) last years collection 16,800.00 - (129.25) 68,718.33 85,389.08
85,389.08
Change in Gross Intrastate Revenues(GIR)
4 Reported Gross Intrastate Revenues for CY201 1 n/a 13,920,986.23 2,017,430,933.97 2,031,351,920.20
5 Last Year CY2010GIR n/a 1165862153 202508809018 203674271171
6 over(under) last year 2,264,364.70 (7,655,156.21) (5,390,791.51)
7 percent increase/(decrease) from last year 19.43% -0.38%
Apportionment Factor Calculation
8 iiii .i- •iaists
9 LastYear 0009994 ) 000229?
10 over(under) last year (0.001635) 0.000043
11 percent increase/(decrease -) over last years factor -16.36% 1.87%
12 Maximum Percentage Allowed by Law 1.0% 0.3%
Maximum Percent Express as a decimal 0.010000 0.003000