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HomeMy WebLinkAbout19901105.docx Minutes of Decision Meeting November 5, 1990 - 1:40 p.m. In attendance: Commissioners Joe Miller, Perry Swisher and Ralph Nelson; staff members Mike Gilmore, Brad Purdy, Don Howell, Tom Faull, Bill Eastlake, Marsha Smith, Stephanie Miller, Bev Barker, Lori Mann, Syd Lansing, Belinda Anderson, Bob Smith, Eileen Benner, Madonna Faunce, Terri Carlock, Birdelle Brown, Gary Richardson, Randy Lobb and Myrna Walters.  Also present were:  Al Fothergill, Wendell Phillips, Dan Poole and Jim Wozniak. Items from the November 5, 1990 Agenda were discussed as follows: 2.  Mike Gilmore's October 29, 1990 Decision Memorandum re:  Case No. GNR-T-88-7--Teleconnect Long-Distance Services and Systems Company's Petition for a Declaratory Order. Approved dismissal of Teleconnect case but won't issue the order until rulemaking order goes out. 5.  Regulated Carrier Division Agenda dated November 5, 1990. Approved. 8.  Discussion of Case No. MTB-T-90-3. Commissioner Miller said in review:  In this case the Commission held its hearing and made its decision.  Then last week staff brought to the attention of the Commissioners some new information about the amount for sharing which necessitated some relatively quick decision on the part of the Commission if Commission was to stay with the original intent to resolve this case as soon as possible.  Then had Don Howell get ahold of the parties to the case to inform them of this decision meeting. Thought perhaps the best way to start is to have Don Howell or Stephanie Miller explain what necessitated this discussion. Don Howell said:  As part of Phase II order in MTB-T-90-3, Syd Lansing had occasion to ask the company about an accounting treatment of removal of Tech.  Said there are three adjustments under revenue sharing - listed them.  Company had inadvertently included in this  expenses $196,000 of removal costs which had the effect of increasing revenue sharing.  Last Thursday Dan Poole notified staff -2- of this occurrence.  Commissioners were then notified.  Tried to determine how best to proceed with this case.  There were two main concerns of the Commission.  (1)  Would Commission want to audit those estimates and (2) would the delay caused by the audit, also delay the refund that the Commission has already decided on of $5.00 per line.  Friday and again this morning Syd Lansing audited the number and had the opportunity to confirm that the number is correct with a caveat.  Also the company has indicated that whether the Commission today goes with $5.00 or $5.49, that using either number will not delay the credit mechanism.  Syd Lansing's caveat is:  The Tech Plus cost for 1989 includes 10 months of actual and 2 months estimate, so Syd was concerned whether the 2 months estimated was a complete enough number for the Commission to use to decide the additional dollars.  The 2 months of actual estimates are going to be the numbers the company books for 1989.  If there is a true-up necessity between those two months' estimate, then any true-up will occur  in the 1990 Tech  Plus annual report.  The number is calculated and is verified and if staff wants it, can true-up the 2 months in 1990. Commissioner Miller asked what the options available were:  if the Commission has some concern about the accuracy of the 10 and 2, Commission could go with the $5.00 now and the Company and staff have reached an agreement that if Commission wants to go with $5.00 now, could roll that $300,000 into 1990 and Company would pay interest on that amount of money at their authorized rate of return; or if the Commission feels the current process is sufficient and wants to go with the $5.49, Company and staff are agreed to submit a stipulation that would stipulate to the additional material coming into the record, showing the cause, making the motion and augmenting the record for this change.  There are four intervenors:  MCI is taken care of.  AT&T wasn't concerned.  Other two are represented here.  That would take care of due process. Commissioner Miller reviewed options:  (1)  Include the new amount of revenue that would increase it to $5.49 per Title 61 Access Line, without adjustment it was $5.00. Or could hold the money and let it accrue interest until further analysis is made. Asked Syd Lansing if after his audit he was satisfied with the number? Syd Lansing said this is no more inaccurate than any 10 month actual and 2 month estimate.  Don't think it is big money. -3- Commissioner Miller asked if the element of uncertainty is the 2 months? Syd Lansing replied it was. Commissioner Miller said that is 1/6th of this category.  Asked - filtered all the way down to the refund, how much effect does that have at the bottom? RaLph Nelson said 8 cents.  Said he would be inclined since the record is closed and that is an estimated figure, would carry it forward at the company's rate of return and figure it next year.  To go back and open the record seems cumbersome.  Think it would be inviting other last minute proposals next year that may not be so easily audited.  Think we had a good period of time to examine the other figures.  Would like this to go through the process next year. Commissioner Swisher said suppose Commission voted for $5.49, parties should not expect this kind of a closing each year.  So, would be against including it this year.  Syd Lansing should be able to look at accounts and should not be foreclosed.  Don't like the idea of making a clean shot of something that isn't that clear cut. Commissioner Nelson said auditing is an on-going thing and we need a cut-off point. Commissioner Miller said it does appear that this number is as firm as any number can be in this and the magnitude is small.  We did decide that for this year this money should go back to Title 61 ratepayers.  Given the fact the number is certain and given our previous commitment, would be inclined the other way.  The fact that this came up late is not an indication of a problem.  It is an indication of our ability to act quickly to changes and not wait until the future.  Even though the money is going to bear interest, the more of a problem you have on who should get the refund.  The further out you go, ratepayers during the relevant year may not be ratepayers later.  Think it should match up. Commissioner Swisher said trying to run people down for a small amount does not make sense. Commissioner Miller said he was sure in this instance we would not try to distinguish current customers from future - best chance of fairness would be to give it back now. -4- Commissioner Nelson asked Al Fothergill his feelings? All Fothergill said he thought it should be a rate reduction, not a refund.  Spoke to Commissioner Swisher's comment about going into the 90s. Wendell Phillips said he would be interested in the likelihood in the change in revenue sharing between this year and next.  Must have been some idea of the likelihood of amount of sharing for next year.  Would be concerned that this 50 cents discovered now would not be an element through some other accounting procedure between now and then.  Would be desirable to get maximum now if there is likelihood of not getting it next year. Commissioner Nelson said he thought there would be an amount to share that would be in the neighborhood or above what was last year.  Would think it would be a higher number. Marsha Smith said the decision could be to not give it as a credit, next year. Commissioner Miller asked staff if they had any thoughts? Mike Gilmore said if you go with Commissioner Swisher and Commissioner Nelson you need to say that 49 cents is still there. Commissioner Nelson said he was hoping it would be June next year. Stephanie Miller said staff brought up whether or not it should be flowed through.  Didn't think it could be audited so fast. Commissioner Miller said he still didn't see how rolling it over this year would help prevent last minute stuff from happening. Commissioner Nelson said if something last year were to come up next year and it is a 3 week process, are we going to delay 3 weeks? Al Fothergill said he wondered if the Commission couldn't do 49 cents plus interest. Commissioner Miller said he is usually the one to say take is slow, but here there is no policy decision to make.  We have decided our policy this year to return to ratepayers.  There is no factual uncertainty. -5- Commissioner Swisher said he would be happy to stipulate that the 49 cents accrue because it is a credit.  Can protect it from not being used for something else. Commissioner Nelson said he would be in agreement that it be a credit next year, not for something else. Commissioner Miller said if you are willing to commit that the 49 cents should be given back, why not now? Commissioner Swisher said he thinks it is bad procedure to get into the habit of buttoning things up. Commissioner Miller said it seems we are saying we know what the facts are:  we all know what we want to do, only reason for not doing this is that regulation should be slow. Commissioner Nelson said he has a problem with reopening the record. Wendell Phillips said it seems strange that the amount to be refunded was exactly $5.00. Eileen Benner said if you don't use a credit/dated mechanism next year and you have kept this 49 cent refund, the company would have to go to the expense for one time, there wouldn't be additional billing expense this year. Commissioner Nelson said at this time in his mind if there was a $6.00 refund next year, the amount going back to the customer would be more than 49 cents.  Think it will be part of the total. Commissioner Miller said if something is done differently next year, company will have to go the expense of refunding 49 cents. Commissioner Swisher said events between now and end of next year are not dependable. Commissioner Nelson said if it were the last year of revenue sharing it would be different. Dan Poole said his only observation was that Company is completely indifferent.  Whether it is done in 1991 or this year, the only observation is the 49 cents is the calculation of the value of the error, divided by the Title 61 access lines at the end of August.  If you are going to take Commissioner Swisher and Commissioner Nelson's proposal, it would work better for an audit trail if the correction to Tech Plus was run and calculation was done of the absolute dollars.  That should go to ratepayers as a credit.  Give company that number in an order.  Then you -6- have the finite number in an account, will apply the interest, everything will be quantifiable.  Then you can decide what to do with the actual  dollars ($148,000). Don Howell said staff's position was to do the money.  Question he has is:  When do you want the interest to start accruing and we haven't had any discussion on whether you want to use the authorized rate of return or return on equity. Commissioner Nelson said he thought we should be looking at 1990 for the interest period. Commissioner Swisher said there is some responsibility on our part to find these things. Stephanie Miller said company makes it difficult and we have limited resources for doing audits. Commissioner Swisher said he didn't mind backing off if we can make the point that we never can really audit the company. Commissioner Nelson said there may be more problems to carry it forward rather than giving it back now. Commissioner Swisher said if Nelson is going to give in on the interest, would say go and run with it. Commissioner Nelson asked if there were any objections to opening the record and putting this into it? Dan Poole explained the stipulation and joint motion to augment the record. Commissioner Miller said point Commissioner Swisher is trying to make is Commission would be distressed if they found themselves in the same situation next year. Don Howell said this has been a major undertaking on the part of everyone.  Should not have to go back and look at the past year. Wendell Phillips said he would only sign off on the 49 cents being okay, but not the stipulation. Parties will get together on the wording. Commissioners agreed on refund at this time. -7- Discussed rescheduling Boise Water as long as Al Fothergill was present. Al Fothergill spoke to Power's scheduling.  Power would be available the first of January or earlier in November. Mike Gilmore suggested right after New Years. Okayed. 3.  Lori Mann's October 31, 1990 Decision Memorandum re:  Idaho Power's Request to Initiate Conservation Program for Manufactured Homes; Case No. IPC-E-90-17. Commissioner Miller asked Bill Eastlake about this? Bill Eastlake thought it looked fine.  Next step would be modified procedure.  Said Water Resources is concerned about the inspections. **Will go out for comment on modified procedure. 4.  Tonya Clark's November 1, 1990 Decision Memorandum re:  Pocatello Urban Transit, Pocatello, Idaho. Tonya Clark said they are now asking for temporary to be extended to January 31, 1991. Commissioner Nelson said he didn't have any problem with the extension. Commissioner Miller asked Commissioner Swisher what he would suggest? Commissioner Swisher suggested giving them the 90 day extension. Unanimously decided on 90 days. 6.  Tonya Clark's November 2, 1990 Decision Memorandum re:  Sun Valley Stages, Inc., M-3006-55. Discussed going to hearing on Sun Valley Stages. Tonya Clark said Commission either needs to order him to provide service or let him off this year and we will set it for hearing and say you have to provide information as to why you can provide service. Commissioner Miller asked about curtailment period? -8- Mike Gilmore said it is May 1 to November 1. Now he wants April 15 to December 15. Commissioner Miller suggested saying okay you can stretch out the curtailment period for this year but we will have a hearing to find out ridership. Tonya Clark said in Sun Valley you would get the locals and would try to identify travel agents that are connecting people up with SVS and they can provide testimony. Commissioner Swisher said his only caution would be hearing on Kirkman the Chamber of Commerce sided with him last time.  Don't know who to turn to.  What would be a dominant travel agency? **Need information from travel agents, not Chamber of Commerce. 7.  Eileen Benner's November 2, 1990 Decision Memorandum re:  GEM-T-90-1; Gem State OPUS Project. Approved. 9.  Discussion of letter dated 10-25-90 re:  CEM/UPL Contract Negotiation. Commissioner Miller said we have given this CEM project very expedited consideration.  We decided his last case without a hearing.  Almost thought this should be a circumstance where we say go ahead and file a complaint and let us decide how this insurance question should be resolved. Commissioner Nelson said he was disappointed with them. Brad Purdy said Pete Richardson said Mr. Wissa has a diary of discussions between himself and the company.  Wants to show he has been actively pursuing this. Discussed escrow provisions. Tom Faull said we did say it should be similar to what Idaho Power Company is doing. Commissioner Miller said he would like them to file a complaint. Tom Faull said Wissa may not want to pursue this any further (they are running out of money). -9- Commissioner Miller said he thought we would be doing him a favor by getting them in on this. **Commissioner Miller will respond to Peter Richardson's letter. 10. Part Three of Three - Case No. GNR-T-90-6, Idaho Regional Exchange Carriers' Update for Intrastate Access Tariff. Commissioner Miller asked if the substantive question is whether the Sunday rate should apply?  Asked why it should be revenue neutral?  Why would we get mad if these little companies make money? Eileen Benner said interstate has no peak/off peak. Don Howell said he didn't think staff knows what GTE's position is on this. Commissioner Miller said Eileen Benner is suggesting we approve the tariff with the exception of the off-peak. Eileen Benner said there is no rationale for this. **Commissioner Swisher said lets not give it to them. Commissioner Nelson said it does seem odd to him.  Will also so say no. Do final order on all three aspects of the filing. Meeting adjourned. Signatures on next page .... -10- Signature page for November 2, 1990 Minutes.         DATED at Boise, Idaho this       day of January, 1991.                           PRESIDENT                           COMMISSIONER                           COMMISSIONER ATTEST:                               Commission Secretary 0006M