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Minutes of Decision Meeting
January 2, 1991 - 1:30 p.m.
In attendance:
Commissioners Joe Miller, Perry Swisher and Ralph Nelson and staff members Mike Gilmore, Don Howell, Marsha Smith, Bob Smith, Tom Faull, Eileen Benner, Bill Eastlake, Bev Barker, Randy Lobb, Lynn Anderson and Myrna Walters. Also in attendance was Morgan W. Richards, Attorney at Law.
Items from the January 2, 1991 Agenda were discussed as follows.
3. Terri Carlock's December 26, 1990 Decision Memorandum re: Potlatch Telephone Company REA Loan Application, Case No. POT-T-90-3.
Commissioner Nelson said it is about $3250 a customer. Thought in GTE, their investment was $4,000. Are we in reasonable bounds?
Commissioner Swisher asked if we can expect a USF tap on this?
Randy Lobb said it depends on how rates increase. If they raise them all the same they won't reach the threshhold.
Marsha Smith asked about $12.67?
Randy Lobb responded they got that from Troy Telephone.
Commissioner Nelson asked about the .112 access minute charge.
Commissioner Miller asked if we were being asked to approve borrowings or rate increase?
Terri Carlock said the company wants to wait at least one full year after upgrade and possibly two years to see what happens before they change rates.
Randy Lobb said it is a fairly large percentage converting to single party but some of it must be related to more than change to single party.
Commissioner Miller said as long as we are just approving the borrowing right now and they understand it will take an application to raise rates separate from this.
Terri Carlock said she tried to get the message across that this didn't automatically increase rates.
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Commissioner Miller asked how much public feedback, if any have they gotten? Has the plan been published?
Woody Richards responded for the company. Said there was a lot of discussion at the Arrow Junction hearing about the upgrade. Said it was his understanding that they are going to raise rates in increments. There may not be a complete incremental increase.
Commissioner Swisher asked Randy Lobb about his calculations? Is it the way NECA works?
Commissioner Miller asked Commissioner Nelson if he had any problem with what this does to the capital structure?
Commissioner Nelson said he was looking at the parent company.
Commissioner Miller asked if we usually accept their capital structure?
Terri Carlock said yes - actual capital structure.
Commissioner Nelson asked about the default clause? Thought it just applied to electricity (at REA)?
Gary Richardson asked if there was enough time to invite comments?
Commissioner Miller said it gets back to the question, has there been any public discussion of the details and terms of rates?
Woody Richards said there has been discussion of the upgrade, but not the rates. Company will give it publicity.
Commissioner Miller said his attitude is we should approve it primarily because of 1 party service. How much is for one party service and how much is for other things, is a question.
Commissioner Swisher said the order should say that approval of the loan is granted but there will be a prudence review and how they spent it will be subject to review.
Commissioner Miller said our direction should be to encourage one party service. The other side of this is, suspect some of this is not necessary for one party service.
**Approved the request - with caveats.
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1. Belinda Anderson's December 20, 1990 DecisionMemorandum re: PAL Lines.
Commissioner Miller said under recommendations, would be inclined to go with No. 2.
Commissioner Swisher asked - shouldn't local toll access be treated the way regular payphone are treated? Once you have said that, the question is not really the function of this local collect call, a social one. Is it to keep the person in jail from calling excessively?
Belinda Anderson said they can reach someone who is unwilling to talk to them. Time charge has become a reality. Blaine County has a 7 minute timed call.
Commissioner Miller said if we look further into this, what will we ultimately do to rates?
Belinda Anderson said cap the rates. They target Idaho because it is essentially a deregulated state.
Mike Gilmore suggested starting another case and putting it out for comment - ask for recommendations.
Commissioner Nelson asked what the analysts thought of the limiting of calls?
Belinda Anderson said they cut them off, then they can redial. Thought if you put it within a reasonable rate, it would help. Said ultimately can prevent them from having to talk to certain people.
Commissioner Nelson asked if it was a problem to have them talk a long time?
Belinda Anderson said they are making money with it.
Commissioner Swisher said he thought we should say something when we ask for comment, about not being able to make an emergency call unless it is collect. Thought same rules out of jail should be the same ones in jail.
Commissioner Miller said if you are talking about emergency calls to emergency providers that is one thing. Looked to him like these calls never got into the public system . We can't tell a jail what they can do inside their building. We don't tell MK what they can do in their building.
Commissioner Swisher said if you cannot pick up your phone without it being a collect call, it is irrational.
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Commissioner Miller said he wanted to be sure we are talking about the same thing. Are you saying the calls going out to 911, fire, etc., should not be collect?
Commissioner Swisher gave an example. That you can get ahold of a control panel without it being a collect call.
Belinda Anderson said that was true. They cannot get to 911. Gave example of a guard having the same problem.
Commissioner Miller said the way prisons are set up there is not a way to communicate with persons.
Belinda Anderson said in Canyon County they did have access to an operator earlier.
Commissioner Miller said these systems were not designed for communication in jail.
Belinda Anderson explained the Twin Falls County jail setup.
Commissioner Miller asked how we can expand this for other institutions at the same time, what should we do?
Mike Gilmore suggested airports.
Bev Barker said hospitals, jail and prisons. Same thing could happen in airports, schools and colleges. If you want to just do places of confinement, they would be jails and prisons.
Eileen Benner said for payphones they are trying to get them collect only.
Commissioner Nelson said as long as we are looking at this, am concerned about the situation at Athol. Asked Mike Gilmore to work on this.
Discussed U. S. West's tariff Advice No. 506.
Commissioners approved tariffs.
**Order suspending of the other matter, but can approve the tariff filing.
2. Mike Gilmore's December 27, 1990 Decision Memorandum re: Decertification of Evergreen Landscaping Water Company--ELV-W-90-1.
Approved.
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Commissioner Miller did ask that the wording be changed to say it is in the public interest, rather than say we lost jurisdiction.
**Change will be made.
Commissioner Swisher suggested change in the ordering paragraph also.
4. Terri Carlock's December 31, 1990 Decision Memorandum re: Washington Water Power Issuance Unsecured Promissory Notes not to Exceed $10 Million, WWP-S-90-6.
Approved.
5. Terri Carlock's December 31, 1990 Decision Memorandum re: PacifiCorp Authority Issue and Sell $5 Million Shares Common Stock and $100 Million No Par Serial Preferred Stock, PAC-S-90-5.
Terri Carlock said they have had so many approved lately. Calculated the ratio. It is in the same ballpark that we have approved previously.
Okayed.
7. Regulated Carrier Division Agenda dated January 2, 1991.
Approved.
Adjourned at 3:25 p.m.
DATED at Boise, Idaho this day of January, 1991.
PRESIDENT
COMMISSIONER
COMMISSIONER
ATTEST:
Commission Secretary
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