20150413_4646.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPPER
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:MARIA BARRATT-RILEY
DATE:April 10,2015
RE:CALCULATING THE 2015 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES,RAILROADS,and PIPELINES;CASE NOS.F-2015-
1,F2015-2 and F-2015-3.
HB 228 and SB 1119 appropriated a total of $6,174,100 to the Commission for fiscal Year 2016.
The total appropriation includes $5,766,500 from fees assessed on public utilities and railroad
corporations;$307,600 for federal grants,and $100,000 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,respectively.
1.Utility Assessment.The utilities do not have any carry-over balance from Fiscal Year
2014 Expenditures.The calculated assessment for public utilities for Fiscal Year 2016 is
$5,623,500 ($5,766,500-s 143,000).
For calendar year 2014,Title 61 and Title 62 utilities reported gross intrastate operating
revenues of approximately $2,266,423,800.This is a reported revenue decrease of
approximately $19.6 million (less than 1%)from the prior year.The proportionate share
for each utility’s regulatory fee is to be assessed at .2481%(.00248 1)of each utility’s
gross intrastate operating revenue.Pursuant to Idaho Code §61-1004(2)and 61-1004(4)
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 and the minimum regulatory fee assessed is no less than $50.00
2.Railroad Assessment.The railroads do not have any carry-over balance from fiscal Year
2014 Expenditures.The calculated assessment for railroads for Fiscal Year 2016 is
$143,000.
For calendar year 2014 the railroads reported gross intrastate operating revenues of
approximately $23,508,800.This is an increase of approximately $5.9 million (34.2%)
from the prior year.Accordingly,the proportionate share for each railroad’s fee is to be
assessed at .6083%(.006083)of each railroad’s gross intrastate operating revenues.
Pursuant to Idaho Code §61-1004(1)and 61-1004(4)the maximum fee payable shall not
DECISION MEMORANDUM -1-
exceed one percent (1%)of the gross operating revenues derived from the intrastate
utility business of each railroad corporation and the minimum regulatory fee assessed is
no less than $50.00
3.Pipeline Assessment.Idaho Code §61-1004 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 fifty dollars ($50.00).
COMMISSION DECISION
1.Does the Commission agree with the Staffs calculation of the regulatory assessment
for the utilities of $5,623,500 and for railroads of $143,000?
2.Does the Commission agree with the Staffs calculation of the regulatory assessment
rate for the utilities of .2481%(.002481)?
3.Does the Commission agree with the Staffs calculation of the regulatory assessment
rate for the railroads .6083%(.006083)?
4.Does the Commission agree with the Staffs calculation of the minimum regulatory
assessment fee of $50 for each pipeline corporation?
5.Does the Commission agree with the Staffs procedures for recovering actual time
and expenses for those pipelines that are safety supervised and regulated?
Maria Barratt-Riley 0DeputyAdministrator
DECISION MEMORANDUM -2-
Attachment 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2015 ASSESSMENT
For Fiscal Year 2016
(amounts are in dollars)
Federal Indirect Railroad Utilities Total
Total FY 2016 Appropriation 307,600 100,000 143,000 5,623,500 6,174,100
Adjustments:
Subtract FY 2014 year end savings
(net expenses-assessed revenues)---
Subtotal:FY 2076 Funding Target 143,000.00 5,623,500.00 5,766,500.00
Total FY 2016 Regulatory Programs 143,000.00 5,623,500.00 5,766,500.00
Aftachment 2
Apportionment Factor (%)
Calculation of 2015 Assessment for FY 2016
Assessments Railroad Utilities Totals
2015 Calculated Total for FY 2016 143,000.00 5,623,500.00 5,766,500.00
2014 Actual Assessment for FY2OI 5 93,335.87 5,420,200.00 5,513,535.87
Change from prior year 49,664.13 203,300.00 252,964.13
percent increase/(decrease)from last year 53.21%3.75%
Gross Intrastate Revenues(GIOR)
Reported Gross Intrastate Revenues for CY2O1 4 23,508,879.50 2,266,423,848.25 2,289,932,727.75
Reported Gross Intrastate Revenues for CY2O1 3 17,521,282.50 2,286,052,142.02 2,303,573,424.52
Change from prior year 5,987,597.00 (19,628,293.77)(13,640,696.77)
percent increase/(decrease)from last year 34.17%-0.86%
Apportionment Factor Calculation
2015 Calculated Assessment Rate for FY 2016 0.006083 0.002481
2014 Assessment Rate for FY 2015 0.005327 0.002371
Change from prior year 0.000756 0.0001 10
percent increase/(decrease -)over last years factor 14.19%4.64%
Maximum Percentage Allowed by Law 1.0%0.3%
Maximum Percent Express as a decimal 0.01 0000 0.003000