HomeMy WebLinkAboutintro.pdfIPUC Annual Report 2010
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The Honorable C.L. “Butch” Otter
Office of the Governor
Statehouse
Boise, ID 83720‐0034
Dear Governor Otter:
It is my distinct pleasure to submit to you, in accordance with Idaho Code
§61‐214, the Idaho Public Utilities Commission 2010 Annual Report.
It has been an extremely busy year at the Commission. Rate increase filings
from utilities are now almost an annual event. In addition to base rate
increases, there are also adjustments – usually increases – to other line items
on the customer bill. These include energy efficiency riders, annual
adjustments to account for the varying costs of power supply not already included in bases rates
and changes to the Bonneville Power Administration credit. Customers are increasingly
frustrated with not only the dollar amount but the frequency of the rate adjustment filings. The
Commission is continually challenged to find ways to make those increases as manageable as
possible and to reduce the frequency of filings.
Thanks to a large Power Cost Adjustment (PCA) reduction, Idaho Power Company customers
actually saw overall rates decline by an average 5.2 percent. Permanent base rates did increase,
by 1.4 percent but a PCA reduction of 6.6 percent netted a 5.2 percent decrease. Customers of
Avista Utilities in northern Idaho received a 9.25 percent electric increase and 2.6 percent gas
increase, but those increases are spread over three years. Avista requested a one‐time 14
percent increase. Avista’s Power Cost Adjustment was also an increase of 2.6 percent on the
electric side and 4.5 percent on the gas side. Further, Avista customers ended up paying another
2 percent due to a reduction in the Bonneville Power Administration credit. Rocky Mountain
Power customers received an average 6.8 percent increase after the utility originally sought a
13.7 percent increase. The increase for residential and small‐business customers is actually 5.5
percent, due to a 1.3 percent reduction in that utility’s energy efficiency rider.
There is good news to report in the areas of energy efficiency and development of renewable
power.
Customer participation in energy efficiency and demand side management programs have
resulted in significant reductions to energy use as well as electrical demand on utility
generation. Such savings preclude or delay the need for utilities to build new generation or
acquire it from more expensive sources. The success of these programs also present challenges
for the commission. The programs cost money and utilities are seeking increases in energy
efficiency riders to fund the programs. The commission is continuing to refine its methods in
testing the cost‐effectiveness of these programs to ensure that, even with a rider, customers
pay less in the long run because these programs are in place.
We are seeing a significant increase in power purchase agreements between our utilities and
developers using anaerobic digestion and other biomass sources as well as solar and wind. But,
as with energy efficiency, the success in renewable development poses challenges as well.
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Utilities are claiming wind is coming online too quickly. They are seeking a reduction in the
eligibility cap – now set at 10 megawatts – under which projects can qualify for commission
posted rates under the provisions of the Public Utilities Regulatory Policies Act, or PURPA. That
case will be ongoing through early 2012.
Our dedicated staff is working on several additional projects you will find outlined in the pages
of this report. This is my last year on the Commission. It has been a privilege and an honor to
serve you and the citizens of Idaho.
Sincerely,
Jim Kempton
President
Idaho Public Utilities Commission
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Idaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Mailing Address:
P.O. Box 83720
Boise, Idaho 83720‐0074
208/334‐0300
Web site: www.puc.idaho.gov
Commission Secretary 334‐0338
jean.jewell@puc.idaho.gov
Executive Administrator 334‐0330
Executive Assistant/Public Information Officer 334‐0339
gene.fadness@puc.idaho.gov.
Utilities Division 334‐0368
Legal Division 334‐0324
Rail Section and Pipeline Safety 334‐0330
Consumer Assistance Section 334‐0369
Outside Boise, Toll‐Free Consumer Assistance 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
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 during the 2009 calendar
year. (The financial report on Page 8 covers Fiscal Year July 1, 2009 through June 30, 2010.)
Anyone with access to the Internet may also review the commission’s agendas, notices, case information
and decisions by visiting the IPUC’s Web site at: www.puc.idaho.gov. Commission records are also
available for public inspection at the commission’s Boise office, 472 W. Washington St., 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, typically
for 30 or more pages.
The Idaho Public Utilities Commission, as outlined in its Strategic Plan, serves the citizens and utilities of
Idaho by determining fair, just and reasonable rates for utility commodities and services that are to be
delivered safely, reliably and efficiently. During the period covered by this report, the commission also
had responsibility for ensuring all rail services operating within Idaho do so in a safe and efficient manner.
The commission also has a pipeline safety section that oversees the safe operation of the intrastate
natural gas pipelines and facilities in Idaho.
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The Commissioners
Jim D. Kempton
Commissioner Kempton began his service on the commission on Oct. 22,
2007. Kempton was appointed by Gov. C.L. “Butch” Otter to fill the unexpired
term of Commissioner Paul Kjellander who was appointed to head the newly
created Office of Energy Resources. On April 6, 2009, Commissioner
Kempton was elected president of the commission.
Before he was appointed to the commission, Kempton was one of two
Idaho representatives on the Northwest Power and Conservation Council,
appointed to that post by former Idaho Gov. Dirk Kempthorne. While on the
council, he also acted as a natural resource cabinet member for Gov. Otter.
Kempton, of Albion, was a member of the Idaho House of Representatives from 1991‐2000,
where he served on the House Revenue and Taxation Committee and chaired the
Transportation and Defense Committee. Earlier, he served for two years on the Environmental
Affairs Committee. Kempton earned his bachelor's and master's degrees in physics from the
University of Idaho. He was a fighter pilot in the United States Air Force and an associate
professor of physics at the United States Air Force Academy. He also worked in the Pentagon as
Department of Defense liaison between the Secretary of Commerce and Secretary of Defense
on international co‐production programs. His Pentagon assignments included Air Force research
and development responsibilities in the F‐16 fighter program and coordinating Iranian Program
Review briefings to the Secretary of the Air Force. He returned to Idaho in 1981 and was
engaged in ranching until 1990, when he was elected to the Idaho Legislature. He is a former
member of the "Idaho EPSCoR" Board, a National Science Foundation experimental program to
stimulate competitive research.
He and his wife, Susan, are the parents of two grown daughters.
Marsha H. Smith
Commissioner Smith is serving her fourth term on the commission. Her
current term expires in January 2015. Smith, a Democrat, served as
commission president from November 1991 to April 1995.
Commissioner Smith is vice chair of the Western Electricity Coordinating
Council (WECC) Board of Directors, chairs the WECC Compliance Committee
and is a member of the Scenario Planning Steering Group for the Regional
Transmission Expansion Planning Project. She represents Idaho on the Western
Interconnection Regional Advisory Body and the State‐Provincial Steering Committee. Smith is a
past president of the National Association of Regulatory Utility Commissioners (NARUC), serves
on the NARUC Board and is a member and past chair of NARUC’s Electricity Committee. She is
also state co‐chair of the Steering Committee of the Northern Tier Transmission Group. She
chaired the Western Interstate Energy Board’s Committee for Regional Electric Power
Cooperation from October 1999 to October 2005. She is a member of the National Council on
Electricity Policy Steering Committee, the Harvard Electricity Policy Group, the Idaho State Bar
and board president of the Log Cabin Literary Center.
Smith received a bachelor of science degree in biology/education from Idaho State University, a
master of library science degree from Brigham Young University and her law degree from the
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University of Washington.
Before her appointment to the commission, Commissioner Smith served as deputy attorney
general in the business regulation/consumer affairs division of the Office of the Idaho Attorney
General and as deputy attorney general for the Idaho Public Utilities Commission. She was the
commission's director of Policy and External Affairs and chair of the NARUC Staff Subcommittee
on Telecommunications.
A fourth‐generation Idahoan, Commissioner Smith has two sons.
Mack A. Redford
Commisisoner Redford was appointed to the commission in February
2007 by Gov. Butch Otter. During 2008 through April 2009, he served as
president of the commission. His term expires in January 2013. At the
time of his appointment, Commissioner Redford practiced law for the
Boise‐based firm of Elam & Burke PA, specializing in commercial
transactions, construction and engineering law, mediation, real estate and
general business.
Redford grew up in the Weiser and Caldwell areas, graduating from
Caldwell High School. He received both his bachelor’s and law degree
from the University of Idaho and in 1967 became a deputy in the Idaho attorney general’s office.
In 1977, he became a deputy attorney general for the Trust Territory of the Pacific Islands,
headquartered in Saipan, Northern Mariana Islands. The territory included a chain of 2,000
islands stretching from Hawaii to the Philippines.
In 1981, Redford became general counsel for Morrison Knudsen Engineers and Morrison
Knudsen International, a position that took him to Saudi Arabia where MK was building the King
Khalid Military City. In 1991, Redford was retained by TransManche Link, based in Folkestone,
England, where he was legal counsel for the Channel Tunnel Contractors, the builders of the 31‐
mile Channel Tunnel connecting England and France. It is the second‐largest rail tunnel in the
world.
In 1992, Commissioner Redford joined the Boise firm of Park & Burkett. In 1993, he was
retained by the World Bank of the Government of Nepal as contract and claims counsel for the
Arun Ill Hydroelectric Project. In 1996, he became general counsel for Micron Construction,
which was later acquired by Kaiser Engineers. He joined the Boise law firm of Elam & Burke in
2001.
Since his appointment, Commissioner Redford has become active in the National Association
of Regulatory Commissioners (NARUC) where he serves on the International Relations and
Water committees as well as the Subcommittee of Nuclear Issues‐Waste Disposal.
Commissioner Redford and his wife, Nancy, are the parents of two children.
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IDAHO PUBLIC UTILITIES COMMISSION, 1913‐2008
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 Feb. 19, 2007
Paul Kjellander Feb. 15, 1999 Oct. 19, 2007
Mack Redford Feb. 19, 2007 Now serving
Jim Kempton Oct. 22, 2007 Now serving
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Financial Summary
FISCAL YEARS 2005 ‐ 2009
Description FY2006 FY2007 FY2008 FY2009 FY2010
Personnel Costs $3,637,402 $3,467,401 $3,898,109 $4,072,505 $3,939,023
Travel $144,840 $146,491 $181,275 $136,859 $127,352
Consultants $40,518 $13,949 $16,041 $0.00 $3,498
Subscriptions $21,722 $28,321 $27,036 $22,883 $28,355
Emp. Training $34,424 $28,827 $33,190 $21,396 $17,079
Postage $8,408 $8,027 $7,174 $8,338 $8,019
Telephone $31,497 $28,007 $27,335 $27,910 $22,454
Office Supplies $14,709 $12,824 $17,697 $14,679 $15,307
Office Rent $115,468 $355,643 $236,497 $236,704 $252,906
Maintenance $8,652 $14,223 $15,817 $10,290 $15,694
Insurance $1,487 $2,702 $5,976 $6,380 $3,732
Office Equip. $0.00 $8,690 $5,279 $1,095 $2,973
Computer Equip. $22,874 $26,809 $15,934 $4,262 $3,185
Commissioner Equip. $3,973 $0.00 $0.00 $22,052 $0.00
Other Equip. $20,082 $0.00 $0.00 $0.00 $0.00
Other Expenses $108,604 $113,671 $122,130 $102,775 $92,913
=========================================================================
Total
Expenditures $4,214,660 $4,255,596 $4,609,484 $4,688,128 $4,531,990
Appropriations $4,754,600 $4,545,300 $4,944,400 $5,236,800 $5,266,100
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Unexpended
Balance $539,940 $289,704 $334,916 $548,672 $734,110
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Commission
Structure and
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 cooperative
utilities.
The governor appoints the
three commissioners 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.
The governor may remove
a commissioner before
his/her term has expired for
dereliction of duty,
corruption or incompetence.
The three‐member
commission was established
by the 12th Session of the
Idaho Legislature and was
organized May 8, 1913 as the
Public Utilities Commission of
the State of Idaho. In 1951 it
was reorganized as the Idaho
Public Utilities Commission. Statutory authorities for the commission are established in Idaho
Code titles 61 and 62.
The IPUC has quasi‐legislative and quasi‐judicial as well as executive powers and duties.
Tell them no!
One of the most frequent questions we get after a utility files
a rate increase application is, “Why can’t you just tell them no?”
For much of the last 90 years, public utility regulation has
been based on the “regulatory compact” between utilities and
regulators: In return for an exclusive franchise (territory) granted
by regulators, utilities agree to serve all those
requesting service; and in return for agreeing to invest capital in
plant and facilities, utilities are given a reasonable opportunity to
earn a fair return on that capital.
In setting rates, the commission must consider the needs of
both the utility and its customers. The commission serves the
public interest, not the popular will. It is not in customers’ best
interest, nor is it in the interest of the State of Idaho, to have
utilities that do not have the generation, transmission and
distribution infrastructure to provide safe, adequate and reliable
electrical, natural gas and water service. This is a critical, even
life‐saving, service for Idaho’s citizens and essential to the state’s
economic development and prosperity.
Unlike unregulated businesses, utilities cannot cut back on
service as costs increase. As demand for electricity, natural gas
and water grows, utilities must meet that demand. In Idaho
recently, and across the nation, a continued increase in demand
as well as a number of other factors have contributed to rate
increases on a scale we have not witnessed before. It is not
unusual now for Idaho’s three major investor‐owned electric
utilities to file annual rate increase requests.
In light of these continued requests for rate increases, the
Commission walks a fine line in balancing the needs of utilities to
serve customers and customers’ ability to pay. When a rate case
is filed, our staff of auditors, engineers and attorneys will take up
to six months to examine the request. If we find the added
expense incurred by utilities was prudently incurred and needed
to serve customers, we have no choice but to allow the utility to
recover that expense. However we can, and often do, deny the
utilities’ recovery of expenses if we are confident we have the
legal justification to do so. All Commission decisions can be
appealed to the state Supreme Court.
In the end, customers must be ensured of paying a reasonable
rate and utilities must be allowed to recover their legitimate
costs of serving their customers and earn a fair rate of return.
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In its quasi‐legislative capacity, the commission sets rates and makes rules governing utility
operations. In its quasi‐judicial mode, the commission hears and decides complaints, issues
written orders that are similar to court orders and may have its decisions appealed to the Idaho
Supreme Court. In its executive capacity, the commission enforces state laws and rules affecting
the utilities and rail industries.
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 meet on the first
Monday in April in odd‐numbered years to elect one of their own to a two‐year term as
president. The president signs contracts on the commission’s behalf, is the final authority in
personnel matters and handles other administrative tasks. Chairmanship of individual cases is
rotated among all three commissioners.
The commission conducts its business in two types of meetings – hearings and decision
meetings. Decisions meetings are typically held once a week, usually on Monday.
Formal hearings are held on a case‐by‐case basis, sometimes in the service area of the
impacted utility. These hearings resemble judicial proceedings and are recorded and transcribed
by a court reporter.
There are technical hearings and public hearings. At technical hearings, formal parties who
have been granted “intervenor status” present testimony and evidence, subject to cross‐
examination by attorneys and staff from the other parties and the commissioners. At public
hearings, members of the public may testify before the commission.
In 2009, the commission began conducting telephonic public hearings to save expense and
allow customers to testify from the comfort of their own homes. Commissioners and other
interested parties gather in the Boise hearing room and are telephonically connected to
ratepayers who call in on a toll‐free line to provide testimony or listen in. A court reporter is
present to take testimony by telephone, which has the same legal weight as if the person
testifying were present in the hearing room. Commissioners and attorneys may also direct
questions to those testifying.
The commission also conducts regular decision meetings to consider issues on an agenda
prepared by the commission secretary and posted in advance of the meeting. These meetings
are usually held Mondays at 1:30 p.m., although by law the commission is required to meet only
once a month. Members of the public are welcome to attend decision meetings.
Typically, decision meetings consist of the commission’s review of decision 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.
Commission Staff
To help ensure its decisions are fair and workable, the commission employs a staff of
about 50 people – engineers, rate analysts, attorneys, accountants, investigators, economists,
secretaries and other support personnel. The commission staff is organized in three divisions –
administration, legal and utilities.
The staff analyzes each petition, complaint, rate increase request or application for an
operating certificate received by the commission. In formal proceedings 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
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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, a commission secretary, an
executive administrator, an executive assistant and support personnel.
The two policy strategists are executive level positions reporting directly to the
commissioners with policy and technical consultation and research support regarding major
regulatory issues in the areas of electricity, telecommunications, water and natural gas.
Strategists are also charged with developing comprehensive policy strategy, providing assistance
and advice on major litigation before the commission, public agencies and organizations.
(Contact Lou Ann Westerfield, 334‐0323 and Wayne Hart, 334‐0354, policy analysts.)
The commission secretary, a post established by Idaho law, keeps a precise public
record of all commission proceedings. The secretary issues notices, orders and other documents
to the proper parties and is the official custodian of documents issued by and filed with the
commission. Most of these documents are public records. (Contact Jean Jewell, commission
secretary, at 334‐0338.)
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, information systems, rail section operations and
pipeline safety. The executive administrator also serves as a liaison between the commission
and other state agencies and the Legislature. (Contact Ron Law, executive administrator, at
334‐0331.)
The executive assistant is responsible for public communication between the
Commission, the general public and interfacing governmental offices. The responsibility includes
news releases, responses to public inquiries, coordinating and facilitating commission
workshops and public hearings and the preparation and coordination of any IPUC report
directed or recommended by the Idaho Legislature or Governor. (Contact Gene Fadness,
executive assistant, at 334‐0339.)
Legal Division
Five deputy attorneys general are assigned to the commission from the Office of the
Attorney General and have permanent offices at IPUC headquarters. The IPUC attorneys
represent the staff in all matters before the commission, working closely with staff accountants,
engineers, 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. (Contact Don Howell, legal division director, at 334‐0312.)
Utilities Division
The Utilities Division, responsible for technical and policy analysis of utility matters
before the commission, is divided into three sections. (Contact Randy Lobb, utilities division
administrator, at 334‐0350.)
The Accounting Section of seven auditors audits utility books and records to verify
reported revenue, expenses and compliance with commission orders. Staff auditors present the
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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. (Contact
Terri Carlock, accounting section supervisor, at 334‐0356.)
The Engineering Section of seven engineers 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 co‐generation 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
facilities. (Contact Dave Schunke, engineering section supervisor, at 334‐0355.)
The Telecommunications Section includes three analysts who handle issues involving
telecommunications. (Contact Joe Cusick, section supervisor, at 334‐0333.)
The Consumer Assistance Section includes six division investigators who resolve
conflicts between utilities and their customers. Customers faced with service disconnections
often seek help in negotiating payment arrangements. Consumer Assistance may mediate
disputes over billing, 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. (Contact
Beverly Barker, administrator for the Consumer Assistance section, at 334‐0302.)
Rail Section
The Rail Section oversees the safe operations of railroads that move passengers 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 crossings.
As part of its regulatory authority, the commission evaluates the discontinuance and
abandonment of railroad service in Idaho by conducting an independent 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
abandonment would be harmful to Idaho interests, it then represents the state before the
federal Surface Transportation Board, which has authority to grant or deny line abandonments.
(Contact Ron Law, rail section supervisor, at 334‐0331.)
Pipeline Safety Program
The pipeline safety section oversees the safe operation of the intrastate natural gas
pipelines and facilities in Idaho. The commission’s pipeline safety personnel verify compliance of
state and federal regulations by on‐site inspections of intrastate gas distribution systems. Part of
the inspection process includes a review of record‐keeping practices and compliance with
design, construction, operation, maintenance and drug/alcohol abuse regulations.
Key objectives of the program are to monitor accidents and violations, to identify their
contributing factors and to implement practices to avoid accidents. All reportable accidents will
be investigated and appropriate reports filed with the U.S. Department of Transportation in a
timely manner. (Contact Ron Law, pipeline safety program supervisor, at 334‐0331.)