20230410_F2023_1_2_mbr.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER ANDERSON COMMISSIONER LODGE COMMISSIONER HAMMOND COMMISSION SECRET ARY ADAM RUSH LEGAL WORKING FILE
MARIA BARRA TT-RILEY, EXECUTIVE DIRECTOR
APRIL 10, 2023
CALCULATING THE 2023 REGULATORY FEE ASSESSMENTS FOR PUBLIC UTILITIES, and RAILROADS; CASE NOS. F-2023-1 and F-2023-2.
In March and April 2023, the Idaho Legislature passed, and the Governor signed HB322 and SB
1200 appropriating a total of $7,183,600 to the Commission for Fiscal Year (FY 2024). The total
appropriation includes $6,593,600 from fees assessed on public utilities and railroads; $370,700
for federal grants; and $219,300 for indirect funds.
The Commission finished FY 2022 with an unused appropriation balance of $1,164,400. This
one-time reversion amount was due to multiple vacancies during the year and reduced operating expenses tied to limited travel and the end of the COVID 19 restrictions. As authorized by Idaho
Code § 61-104, this reverted appropriation amount was pro-rated between the utilities and railroad
assessment calculations to fund FY 2024. 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.
I.Utility Assessment. The FY 2022 reverted carry-over amount for utilities was $1,127,100. The
calculated assessment for public utilities for FY 2024 is $5,255,392 ($6,382,492-$1,127,100).
2.For Calendar Year (CY) 2022, Title 61 and Title 62 utilities reported gross intrastate operatingrevenues totaling approximately $2.65 billion. This is a reported revenue increase ofapproximately $262 million (10.9%) from the prior year. The proportionate share for eachutility's regulatory fee is to be assessed at .1982% (.0019825) of each utility's gross intrastate
operating revenue. Pursuant to Idaho Code § 61-1004(2) the maximum fee payable shall not
exceed three-tenths (3/10) of one percent ( 1 % ) of the gross operating revenues derived fromthe intrastate utility business of each such public utility. Pursuant to Idaho Code§ 61-1004(4)the minimum regulatory fee assessed shall be no less than $50.00.
DECISION MEMORANDUM -1-
3.Railroad Assessment. The FY 2022 reverted carry-over amount for railroads is $37,300. The
calculated assessment for public utilities for FY 2024 is $173,808 ($211,108-$37,300).
For CY 2022 the railroads reported gross intrastate operating revenues of approximately $20.4million. This represents a decrease of approximately $4.25 million (17.22% from the prioryear). Accordingly, the proportionate share for each railroad's fee is to be assessed at .8493%
(.008493) of each railroad's gross intrastate operating revenues. Pursuant to Idaho Code §61-
1004( 1) the maximum fee payable shall not exceed one percent ( 1 % ) of the gross operatingrevenues derived from the intrastate utility business of each railroad corporation. Pursuant toIdaho Code § 61-1004( 4) the minimum regulatory fee assessed shall be no less than $50.00.
4.Pipeline Assessment. Idaho Code § 61-1004(3) authorizes the Commission to assess each
pipeline corporation a regulatory fee to recover the Commission's actual time and expensedevoted to the safety supervision and regulation of each pipeline corporation. In no case shallthe fee be less than $50.00. Idaho Code§ 61-1004(4).
COMMISSION DECISION 1.Does the Commission agree with the Staffs calculation of the regulatory assessment for theutilities of $5,255,392 and for railroads of $173,808?
2.Does the Commission agree with the Staffs calculation of the regulatory assessment rate for the
utilities of .1982%?
3.Does the Commission agree with the Staffs calculation of the regulatory assessment rate for therailroads of .8493%?
DECISION MEMORANDUM -2-
Maria Barratt-Riley Executive Director
Attachment 1
Total FY 2024 Appropriation
Adjustments:
Subtract FY 2022 year end reversion
(net expenses-assessed revenues)
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2023 ASSESSMENT
For Fiscal Year 2024
(amounts are in dollars)
Federal Indirect Railroad
370,700 219,300 211,108
(37,300.00)
Subtotal: FY 2024 Funding Target Adjustments 173,808.00
Total FY 2024 Regulatory Programs 370,700 219,300 173,808.00
6,593,600
Utilities Total
6,382,492 7,183,600
(1,127,100.00) (1,164,400.00)
5,255,392.00 5,429,200.00
5,255,392.00 6,019,200.00