intro.pdf

Page 1 IDAHO PUBLIC UTILITIES COMMISSION
2000
ANNUAL REPORT
Introduction
The commission shall make and submit to the governor on or before the
first day of December of each year, a report containing a full and complete
account of its transactions, and proceedings for the preceding fiscal year,
ending June thirtieth, together with such other facts, suggestions, and
recommendations as it may deem of value to the people of the state.
The Public Utilities Law
Idaho Code 61-214
With this report, the Idaho Public Utilities Commission has satisfied Idaho Code
61-214; this is a “full and complete account” of the most significant cases to
come before the Commission from July 1, 1999 through June 30, 2000. An
accounting of each and every action taken by the Commission for this time
period may be referenced through the Commission’s Summary of Utilities
Activities and Summary of Rail Activities compiled monthly by the
Commission’s Utilities and Rail divisions. These summaries provide a chrono-
logical list of all applications, orders, notices, errata and tariff actions and are
available upon request.
Anyone with access to the Internet may also review the Commission’s agendas,
notices and decisions by visiting the IPUC’s World Wide Web home page at:
http://www.puc.state.id.us. E-mail may be sent to the Commission at:
[e-mail]. Commission records are also available for public inspec-
tion at the Commission’s Boise office Monday through Friday, 8 a.m. to 5 p.m.
A nominal fee of 5-cents per page may be charged for the cost of copying.
The Idaho Public Utilities Commission, as outlined in its 1997 Strategic Plan,
serves the citizens and utilities of Idaho by determining fair, just and reasonable
rates for utility commodities and services which are to be delivered safely,
reliably and efficiently. During the period covered by this report, the Commission
also had responsibility for ensuring that all rail services operating within Idaho do
so in a safe and efficient manner. Motor carrier responsibilities have been
transferred to the Department of Law Enforcement and Idaho Transportation
Department, with the Commission retaining its jurisdiction in rail carrier matters.
Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Mailing Address:
P.O.Box 83720
Boise, Idaho 83720-0074
208/334-0300
World Wide Web URL: http://www.puc.state.id.us
Commission Secretary ............................................................. 334-0338
[e-mail]
Executive Administrator ............................................................334-0330
Utilities Division ........................................................................334-0368
Legal Division ...........................................................................334-0324
Rail Section ..............................................................................334-0330
Consumer Assistance Section ....................................................334-0369
Outside Boise, Toll-Free Consumer Assistance Line .......1-800-432-0369
Idaho Telephone Relay Service (available statewide)
Voice:............................................................................1-800-377-1363
Text Telephone:..............................................................1-800-377-3529
TRS Information:...........................................................1-800-368-6185
IDAHO PUBLIC UTILITIES COMMISSION Page 22000
ANNUAL REPORT
The Commissioners
Page 3 IDAHO PUBLIC UTILITIES COMMISSION 2000
ANNUAL REPORT
Dennis S. Hansen
was appointed to the Commission in Febru-
ary 1995 by Gov. Phil Batt.
Hansen, reelected in April of 1999 to a
second two-year term as Commission
President, is a member of the Committee on
Gas of the National Association of Regula-
tory Utility Commissioners (NARUC) and
served on the Federal Railroad
Administration’s Safety Advisory Committee.
Prior to his appointment to the Commis-
sion, he was an accountant with Monsanto
Co. in Soda Springs, Idaho.
Commissioner Hansen, a Republican, was
elected five times to the Idaho State Senate,
where he served from 1987 to 1995. He was
Chairman of the Senate Transportation
Committee from 1991 to 1995 and a mem-
ber of the Agricultural Affairs and Finance
committees. He was elected by his col-
leagues to service on the Legislative Council
from 1993 to 1995. From 1973 to 1977,
Commissioner Hansen served on the Soda
Springs City Council.
He has a 1967 Bachelor of Science degree in business management from
Brigham Young University in Provo, Utah. Commissioner Hansen also attended
Ricks College in Rexburg, Idaho, 1960-61.
A third generation Idahoan, Commissioner Hansen and his wife, Marianne,
have six children - Shelli, Kristi, Chad, Heather, Ryan and Nikki.
Marsha Smith
IDAHO PUBLIC UTILITIES COMMISSION Page 42000
ANNUAL REPORT
The Commissioners
is serving her second term on the Com-
mission, to which she was appointed by
Gov. Cecil Andrus in January 1991 and
reappointed by Gov. Phil Batt in January
1997. A Democrat, Commissioner Smith
served as Commission President from
November 1991 to April 1995.
She is Chair of the Electricity Commit-
tee of the National Association of Regula-
tory Utilities Commissioners (NARUC),
and serves on that organization’s Board of
Directors and Ad Hoc Committee on
Electric Industry restructuring. Commis-
sioner Smith is also Chair of the Commit-
tee for Regional Electric Power Coopera-
tion of the Western Interstate Energy
Board. She is also a member of the
National Council on Competition and the
Electric Industry and the Harvard Electric-
ity Policy Group.
Commissioner Smith received a Juris
Doctorate degree from the University of
Washington in 1980. She has a Master of Library Science degree from Brigham
Young University and a Bachelor of Science degree in Biology/Education from
Idaho State University.
Prior to her appointment, Commissioner Smith worked as a deputy attorney
general for the Commission and in the business regulation and consumer affairs
division of the Idaho Office of the Attorney General.
A fourth generation Idahoan, Commissioner Smith is married and has two
sons. She and her husband operate a small farm in southwestern Ada County.
Paul Kjellander
Page 5 IDAHO PUBLIC UTILITIES COMMISSION 2000
ANNUAL REPORT
The Commissioners
is serving his first term on the Idaho Public
Utilities Commission, to which he was
appointed in January 1999 by Gov. Dirk
Kempthorne.
Commissioner Kjellander, a Republican,
was elected to three terms in the Idaho
House of Representatives, where he served
since 1994 as a member of the House State
Affairs, Judiciary and Rules, Ways and
Means, Local Government and Transporta-
tion committees. During his last term in office,
Commissioner Kjellander had won election
as House Majority Caucus Chairman.
Commissioner Kjellander’s legislative
service includes membership on the
Legislature’s Information Technology Advi-
sory Council and the House/Senate Joint
Committee on Technology. He also served
as co-chairman of the Legislative Task Force
on the federal Telecommunications Act of
1996 and vice-chairman of the Council of
State Governments West Smart States
Committee Structure and Leadership. His
interim legislative committee assignments included the Optional Forms of County
Government Committee, Capital Crimes Committee and the Private Property
Rights Committee.
Commissioner Kjellander has served as Boise State University’s College of
Applied Technology Distance Learning Director, Interim Program Head of
Broadcast Technology, Station Manager of BSU Radio Network, Special
Projects Unit Director for BSU Radio, Executive Producer/Newscaster for
BSU Radio and Director of News and Public Affairs.
His undergraduate degrees from Muskingum College were in Communica-
tions, Psychology and Art. He holds a Masters in Telecommunications from
Ohio University.
As a member of the National Association of Regulatory Commissioners,
Commissioner Kjellander serves on the Telecommunications & Consumer
Affairs Committees.
He and his wife, Radelle, are the parents of a daughter, Allison, and two sons,
Sky and Justus.
IDAHO PUBLIC UTILITIES COMMISSION Page 62000
ANNUAL REPORT
IDAHO PUBLIC UTILITIES COMMISSION
1913 - 1999
Commissioner From To
J. A. Blomquist May 8, 1913 Jan. 11, 1915
A. P. Ramstedt May 8, 1913 Feb. 8, 1917
D. W. Standrod May 8, 1913 Dec. 1, 1914
John W. Graham Dec. 1, 1914 Jan. 13, 1919
A. L. Freehafer Jan. 14, 1915 Jan. 31, 1921
George E. Erb Dec. 8, 1917 April 14, 1923
Everett M. Sweeley May 23, 1919 Aug. 20, 1923
J. M. Thompson Feb. 1, 1921 Dec. 20, 1932
Will H. Gibson April 16, 1923 June 29, 1929
F. C. Graves Sept. 7, 1923 Nov. 12, 1924
Frank E. Smith March 6, 1925 Feb. 25, 1931
J. D. Rigney July 2, 1929 Sept. 30, 1935
M. Reese Hattabaugh March 2, 1931 Jan. 26, 1943
Harry Holden March 27, 1933 Jan. 31, 1939
J. W. Cornell Oct. 1, 1935 Jan. 11, 1947
R. H. Young Feb. 1, 1939 March 19, 1944
B. Auger Feb. 1, 1943 March 9, 1951
J. D. Rigney March 30, 1944 April 30, 1945
W. B. Joy May 1, 1945 March 9, 1951
H. N. Beamer Jan. 17, 1947 Dec. 31, 1958
George R. Jones March 12, 1951 Jan. 31, 1957
H. C. Allen March 12, 1951 Feb. 28, 1957
A. O. Sheldon March 1, 1957 June 30, 1967
Frank E. Meek Feb. 1, 1957 Feb. 5, 1964
Ralph H. Wickberg Jan. 14, 1959 Feb. 23, 1981
Harry L. Nock May 1, 1964 Sept. 30, 1974
Ralph L. Paris July 1, 1967 Oct. 5, 1967
J. Burns Beal Dec. 1, 1967 April 1, 1973
Robert Lenaghen April 1, 1973 April 15, 1979
M. Karl Shurtliff Oct. 1, 1974 Dec. 31, 1976
Matthew J. Mullaney Jan. 2, 1977 Feb. 15, 1977
Conley Ward, Jr. March 7, 1977 Feb. 9, 1987
Perry Swisher April 16, 1979 Jan. 21, 1991
Richard S. High Feb. 24, 1981 April 30, 1987
Dean J. Miller March 16, 1987 Jan. 30, 1995
Ralph Nelson May 4, 1987 Feb. 12, 1999
Marsha H. Smith Jan. 21, 1991 Now Serving
Dennis S. Hansen Feb. 1, 1995 Now Serving
Paul Kjellander Feb. 15, 1999 Now Serving
Commissioners
Only 39 people have
served as Commis-
sioners of the Idaho
PUC. They have
established a tradition
of fairness, balancing
the needs of utilities
with the needs of
customers.
2000
ANNUAL REPORTPage 7 IDAHO PUBLIC UTILITIES COMMISSION
Financial Summary
IPUC FISCAL YEAR 1996 - FISCAL YEAR 2000
Description FY 1996 FY 1997 FY 1998 FY 1999 FY2000
Personnel Costs $2,657,213 $2,746,215 $2,975,862 $3,197,151 $2,992,650
Travel $108,826 $101,062 $115,090 $125,805 $118,205
Consultants $30,254 $196,833 $99,006 $47,786 $144,316
Subscriptions $22,247 $22,660 $23,459 $23,520 $17,625
Emp. Training $17,606 $22,240 $22,670 $37,622 $26,920
Postage $38,058 $29,479 $12,692 $30,301 $18,819
Telephone $36,891 $34,576 $34,465 $32,017 $22,009
Office Supplies $15,382 $23,866 $23,896 $19,960 $16,678
Office Rent $196,854 $200,315 $231,972 $238,767 $231,821
Maintenance $28,288 $29,866 $22,265 $21,744 $21,694
Insurance $4,612 $4,631 $3,093 $2,023 $4,429
Automobiles $16,947 $18,680 $22,442 - -
Office Equip.$13,670 $43,579 $9,457 $5,506 $2,873
Computer Eqpt.$61,235 $59,236 $44,132 $46,323 $45,096
Comm.’s Eqpt. - -$175 $41,222 $1,035
Other Expenses $55,379 $231,098 $99,449 $116,039 $77,928
Total Expend.$3,324,719 $3,788,208 $3,739,125 $3,985,786 $3,742,098
Appropriations $3,569,000 $3,889,300 $3,952,500 $4,324,300 $4,123,500
Unexpnded Bal.$244,281 $101,092 $213,375 $342,404 $381,402
IDAHO PUBLIC UTILITIES COMMISSION Page 82000
ANNUAL REPORT
... assuring
adequate
service and
affixing just,
reasonable
and sufficient
rates.
IPUC Structure &
Operations
Under state law, the Idaho Public Utilities Commission supervises and
regulates Idaho’s investor-owned utilities - electric, gas, telecommunications and
water, ... assuring adequate service and affixing just, reasonable and sufficient
rates. The Commission does not regulate publicly owned, municipal or coopera-
tive utilities. In setting rates, the Commission must consider the needs of both the
utility and its customers.
IPUC commissioners are appointed by the governor with confirmation
by the Idaho Senate. No more than two commissioners may be of the same
political party. The commissioners serve staggered six-year terms. Vacancies that
occur when the Idaho Senate is not in session are filled by gubernatorial appoint-
ment subject to confirmation by the Senate upon reconvening in regular session.
The governor may remove a commissioner before his/her term has expired for
dereliction of duty, corruption or incompetency.
The three-member Commission was established by the 12th session of
the Idaho Legislature and was organized May 8, 1913 as the Public Utilities Com-
mission of the State of Idaho. In 1951 it was reorganized as the Idaho Public
Utilities Commission. Statutory authorities are established in Idaho Code titles 61
and 62.
The IPUC has quasi-legislative and quasi-judicial as well as executive
powers and duties. In its quasi-legislative capacity, the Commission sets rates and
makes rules governing utility operations. In its quasi-judicial mode, the Commis-
sion hears and decides complaints, issues written orders similar to court orders
and may have its decisions appealed to the Idaho Supreme Court. In its executive
capacity, the Commission enforces state laws affecting the utility and rail indus-
tries.
Commission operations are funded by fees assessed on the utilities and
railroads it regulates. Annual assessments are set by the Commission each year in
April within limits set by law.
The Commission president is its chief executive officer. Commissioners
elect one of their own to a two-year term as president at the Commission meeting
on the first Monday in April in odd-numbered years. The president signs con-
tracts on the Commission’s behalf, is the final authority in personnel matters and
handles other administrative tasks.
Chairmanship of individual proceedings is rotated among all three com-
missioners. Public meetings are conducted regularly. The Commission conducts
its business in two types of meetings: hearings and decision meetings.
2000
ANNUAL REPORTPage 9 IDAHO PUBLIC UTILITIES COMMISSION
IPUC Structure &
Operations
Members of the
general public
may address the
Commission at a
hearing without
prior notice or
formal interven-
tion; however,
those seeking the
full rights of par-
ties - such as the
right to cross-
examine other
witnesses or to
make and argue
motions - must file
a petition for
intervenor status.
Formal hearings on utility and railroad issues are held on a case-by-case
basis, often in the service area of the utility under consideration to allow maximum
public participation. These hearings resemble judicial proceedings and are recorded
as well as transcribed by a court reporter. Formal parties to the case under con-
sideration present testimony and evidence, subject to cross-examination by the
other parties and the commissioners.
Members of the general public may address the Commission at a hearing
without prior notice or formal intervention; however, those seeking the full rights of
parties - such as the right to cross-examine other witnesses or to make and argue
motions - must file a petition for intervenor status.
The Commission also holds decision meetings to consider issues set forth
on an agenda prepared by the Commission Secretary and posted in advance of
the meeting. These meetings are usually held weekly, although by law the Commis-
sion is required to meet only once a month.
Typically, decision meetings consist of the Commission’s review of deci-
sion memoranda prepared by Commission Staff. Minutes of the meetings are taken
and decisions reached at these meetings are preliminary, becoming final only when
issued in a written order signed by a majority of the Commission.
IDAHO PUBLIC UTILITIES COMMISSION Page 102000
ANNUAL REPORT
The Commission
Staff is organized
in divisions -
administration,
legal, utilities,
consumer
assistance and a
rail section.
The staff acts as a
separate party to
a case, presenting
its own testimony,
evidence and
expert witnesses.
Commission Staff
To help ensure that its decisions are fair and workable, the Commission
employs a staff of about 50 people - engineers, rate analysts, attorneys, accoun-
tants, investigators, economists, secretaries and other support personnel. The
Commission Staff is organized in divisions - administration, legal, utilities, con-
sumer assistance and a rail section.
The staff analyzes each petition, complaint, rate increase request or appli-
cation for an operating certificate received by the Commission. In formal pro-
ceedings before the Commission, the staff acts as a separate party to the case,
presenting its own testimony, evidence and expert witnesses. The Commission
considers staff recommendations along with those of other participants in each
case - including utilities, public, agricultural, industrial, business and consumer
groups.
Administration
The Administrative Division is responsible for coordinating overall IPUC
activities. The division includes the three Commissioners, two policy strategists,
Commission Secretary, Executive Administrator, Executive Asistant and support
personnel.
The two policy strategists are executive level positions reporting directly
to the Commissioners providing policy and technical consultation and research
support regarding major regulatory issues in the areas of electricity, telecommuni-
cations, water and natural gas. Strategists assist the Commissioners in developing
comprehensive policy and strategy. They also participate in regional and national
organizations and committees that address utility and regulatory issues.
The Commission Secretary, a post established by Idaho law, keeps a
precise public record of all Commission proceedings. The Secretary issues no-
tices, orders and other documents to the proper parties and is the official custo-
dian of documents issued by and filed with the Commission. Most of these docu-
ments are public records.
The Executive Administrator has primary responsibility for the
Commission’s fiscal and administrative operations, preparing the Commission
budget and supervising fiscal, administration, public information, personnel, infor-
mation systems and rail section operations. The Executive Administrator also
serves as a liason between the Commission and other state agencies and the
Legislature.
The Executive Assistant is responsible for the Commission’s website, elec-
tronic filings and other special projects assigned by the Commissioners.
2000
ANNUAL REPORTPage 11 IDAHO PUBLIC UTILITIES COMMISSION
Commission Staff
The Utilities Division,
is divided into
three sections:
1. Accounting
2. Engineering
3. Telecommunica-
tions
Rail Section
The Rail Section oversees the safe operations of railroads that move pas-
sengers and freight in and through Idaho and enforces state and federal regulations
safeguarding the transportation of hazardous materials by rail in Idaho. The
Commission’s rail safety specialist inspects railroad crossings and rail clearances
for safety and maintenance deficiencies. The Rail Section investigates all railroad
crossing accidents and makes recommendations for safety improvements to cross-
ings.
As part of its regulatory authority, the Commission evaluates the discon-
tinuance and abandonment of railroad service in Idaho by conducting an indepen-
dent evaluation of each case to determine whether the abandonment of a particular
railroad line would adversely affect Idaho shippers and whether the line has any
profit potential. Should the Commission determine an abandonment would be harm-
ful to Idaho interests, it then represents the state before the federal Surface Trans-
portation Board (STB), which has authority to grant or deny line abandonments.
Legal Division
Five Deputy Attorneys General are assigned to the Commission and have
permanent offices at IPUC headquarters. The IPUC attorneys represent the staff
in all matters before the Commission, working closely with staff accountants, engi-
neers, investigators and economists as they develop their recommendations for
rate case and policy proceedings.
In the hearing room, IPUC attorneys coordinate the presentation of the
staff’s case and cross-examine other parties who submit testimony. The attorneys
also represent the Commission itself in state and federal courts and before other
state or federal regulatory agencies.
Utilities Division
The Utilities Division, responsible for technical and policy analysis of utility
matters before the Commission, is divided into three sections.
The Accounting Section audits utility books and records to verify re-
ported revenue, expenses and compliance with Commission orders. Staff auditors
present the results of their findings in audit reports as well as in formal testimony
and exhibits. When a utility requests a rate increase, cost of capital studies are
performed to determine a recommended rate of return. Revenues, expenses and
investments are analyzed to determine the amount needed for the utility to earn the
recommended return on its investment.
IDAHO PUBLIC UTILITIES COMMISSION Page 122000
ANNUAL REPORT
Consumer Assistance
investigators resolve
conflicts between
utilities and their
customers.
Commission Staff
The Engineering Section reviews the physical operations of utilities.
Staff engineers determine the cost of serving various types of customers, design
utility rates and allocate costs between Idaho and the other states served by
Idaho utilities. They determine the cost effectiveness of conservation and
cogeneration programs, evaluate the adequacy of utility services and frequently
help resolve customer complaints. The group develops computer models of
utility operations and reviews utility forecasts of energy usage and the need for
new plant.
The Telecommunications Section reviews and recommends Commis-
sion action on telecommunications issues and new telecommunication services
filed with the Commission. Telecommunications analysts propose ways to allo-
cate revenue among the various types of telecommunication services and recom-
mend rates to recover that revenue.
Consumer Assistance Division
Division investigators resolve conflicts between utilities and their custom-
ers. Customers faced with service disconnections often seek help in negotiating
payment arrangements. Consumer Assistance may mediate disputes over billings,
deposits, line extensions and other service problems.
Consumer Assistance monitors Idaho utilities to verify they are complying
with Commission orders and regulations. Investigators participate in general rate
and policy cases when rate design and customer service issues are brought before
the Commission.
Most consumers contact the Commission by telephone. Staff members
may negotiate payment arrangements with utilities on behalf of consumers and,
when appropriate, refer clients to social service agencies, financial aid programs
or budget counseling services.
As traditionally regulated services become deregulated the Consumer
Assistance Division’s role of educating consumers and mitigating complaints with
non-regulated utilities has increased. The increase in companies providing ser-
vices equates to an increase in consumer inquiries and complaints. Also on the
increase are disputes between companies providing services, especially among
telecommunications providers.
The Consumer Assistance Division is also responsible for conducting
quality of service and compliance investigations and customer satisfaction sur-
veys.
2000
ANNUAL REPORTPage 13 IDAHO PUBLIC UTILITIES COMMISSION
Id
a
h
o

P
u
b
l
i
c

U
t
i
l
i
t
i
e
s

C
o
m
m
i
s
s
i
o
n
Or
g
a
n
i
z
a
t
i
o
n

C
h
a
r
t
IDAHO PUBLIC UTILITIES COMMISSION Page 142000
ANNUAL REPORT
COMMISSION WEBSITE
http://www.puc.state.id.us
The Commission was proud to be a leader in state government web sites
and has been online since 1995. The Commission recognizes the need to provide
information to the public in whatever media is available.
The Commission web site is currently undergoing a major overhaul, and
the goal is to allow citizens across the state equal access to Commission records
and information 24 hours a day, seven days a week.
Currently, citizens can file complaints about a utility or comment on a
current case via our web site. They can access our rules, statutes, annual report,
orders, press releases, Commission agendas, and other special reports online.
We also have a pilot program in progress for filing of tariffs electronically. Most of
the major utilities in the state have electronic tariffs on file. These tariffs are avail-
able to the public on our web site.
Citizens can subscribe to a multitude of e-mail lists allowing them to re-
ceive information automatically via e-mail, including Commission agendas, orders
and press releases.
Consumer information, including a description of the Commission’s pro-
cesses and how a consumer may provide input to the Commission, is also avail-
able from the website.
The Commission is committed to meeting the information needs of our
citizens and encourages participation in its process via the Internet.
Year 2000 Update
As the end of the year 1999 approached there was some concern over
what could be expected when the New Year arrived. Would there be com-
puter problems associated with the Y2K event?
Considerable effort on the part of the utilities and government went into
preparation for the New Year. Every possible scenario was considered.
Redundant systems were installed and tested. An elaborate communications
system was established along with a reporting protocol.
All of this extensive preparation paid off as Year 2000 arrived with no
significant incidents.