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Home My WebLink About19910114.docx Minutes of Decision Meeting January 14, 1991 - 1:30 p.m. In attendance were: Commissioners Joe Miller, Perry Swisher and Ralph Nelson and staff members Mike Gilmore, Don Howell, Terri Carlock, Don Oliason, Gary Richardson, Bev Barker, Bill Eastlake, Randy Lobb, Lynn Anderson, Syd Lansing, Stephanie Miller and Myrna Walters. **Also in attendance were John Souba and Dawna Eliason (and another patron of the Eden/Hazelton/Murtaugh area.) Before consideration of the items on the 1-14-91 Agenda, Commission President Miller announced that he wanted staff to know about a personnel change. With Bill Winiger's retirement in about a year, all three commissioners felt there was a need for someone with real budget and financing expertise. Wanted to find someone with DFM experience. Asked Barbara Porter who might be interested in picking up our budget work. Gave two names, one of which was hers. Were planning on her coming over next summer but with Marsha Smith's appointment as Commissioner, need someone to cover legislative activities. Got ahold of her, asked if she could come over before that. Turns out that she will join us in about 2 weeks to do our legislative work this year and do transition to budget later. When that occurrs Commission will make an appointment from within Commission for Marsha Smith's old job. Think that will be a very good transition. Haven't worked out division of duties. But are pleased to have budget and fiscal affairs and legislative matters for this session covered. **Eileen Benner was in attendance at this time. Commissioner Nelson spoke to current status of Eagle Water issue. City of Eagle offered $425,000 to Eagle Water. Company counteroffered at 1.6 million. City of Eagle has decided they will form their own municipal water company that will surround them. Will take in the two new systems. Next considered was Item 2 from the January 14, 1991 Agenda. 2. Belinda Anderson's January 11, 1991 Decision Memorandum re: Eden-Hazelton EAS. Commissioner Miller said Commission is going ahead with hearing on February 4 but everyone has agreed to limit issues to community dependence question. But do we have a second hearing for options? -2- Lynn Anderson said it would be up to the Commission. Not sure about the prior case, if reliance on those numbers will work. Was wondering if Commission wanted staff and company to have testimony on the numbers. Commissioner Miller said it is his feeling that that is part of the dependence question. After we make that decision, then there would be options. **Testimony on volumes and revenue was discussed. John Souba of US West said he would be able to respond to a staff production response earlier than the January 31 date. Discussed percentage increases in call volume set out in decision memo. John Souba spoke to them. Lynn Anderson commented it might be the Twin Falls economy picking up. John Souba said he thought there was going to be a great number of persons wanting to make statements at this hearing. Think it would not be a good idea to tie this hearing up with a lot of company/staff testimony - technical. Commissioner Miller asked how Commission could get the technical data? Get it in prefiled, but we will not take a long time with that. Commissioner Swisher asked what the independents think about LCAP? Dawna Eliason responded - said she got a call from Filer Mutual. He was concerned about what this would do to his company. Commissioner Miller said: lets continue plans for a hearing on the 4th. Basically the time will be devoted to public testimony on community dependence question. Have an invitation to meet with their committee at 3 that day. Don't know if we can commit to that right now. Will have Lynn Anderson get back to committee. Dawna Eliason asked about limiting of the testimony? Commissioner Miller asked that Dawna Eliason explain that repetitive testimony and lengthly testimony is not helpful. Said Commission could say at the start of the hearing that we will limit testimony to 5 minutes. -3- Commissioner Swisher said he thought he heard her ask the Commission, as a petitioner, to limit the testimony? Dawna Oliason said she wanted to know if people on the committee could testify first? Commissioner Miller asked that the committee get together a list of those who will testify and the Commission will say they will limit testimony. Dawna Oliason said she didn't know if Commission wanted their proposals presented to the people and ask them which they like? Think that after the meeting, the community would go along with what the committee wanted. John Souba explained what he thought the committee wanted. Commissioner Swisher said he thought if Commission were to do that, other people might try to limit choices. Commissioner Miller said he would feel uncomfortable meeting with the committee after the hearing. **Will keep it to a need issue at this hearing. Commissioner Swisher suggested filing their concensus as a post-hearing brief. Commissioner Miller said - have a hearing on the 4th and see where we are at that time. 1. Lori Mann's January 10, 1991 Decision Memorandum re: Taxes on Contributions in Aid of Construction--Case No. U-1500-176. Commissioner Nelson asked if an accountant had looked at Boesiger's proposal? Stephanie Miller said she looked at it. Commissioner Miller said he was a little concerned from a procedural point of view that we opened this to only change 2 areas. Do we have a problem with going into net benefit approach that we are talking about in Boise Water. Mike Gilmore said he thought it would be a good idea to renotice. Thought you could do a flashcut on part of it, though. -4- Stephanie Miller said except the major issue here is Mr. Boesiger paid his contribution in 1990 and we are figuring out the tax contribution for someone else named Johnson. If you don't to 1990, it won't help him. Commissioner Swisher asked if Commission has that authority? Commissioner Miller said if it is not all paid in on collections, can decide what his obligation is to be. Stephanie Miller said what Commission is going to have to do, since these companies fall in the middle in tax brackets, because of the changes in gross-up at the end of the year, will have to figure out how much should be paid by each developer. Can take into account the investment tax credits available. Hopefully they will be calculating them. Problem with Tom Power's method for these small companies they can't fund it up front. Mike Gilmore asked if Commissioners want to broaden this or hold it to ITC? Commissioner Miller said he thought he would hold it to ITC. Stephanie Miller said for Eagle Water, it is difference of 121 versus 119. Commissioner Nelson said for Eagle it is an unused credit. Stephanie Miller said there is no easy way to do this. Commissioner Swisher said it was not taken into account in 1986. Commissioner Nelson said he thought ITC was fine. Especially in the case of Eagle Water, it is appropriate. It is a straight 3%. Stephanie Miller said even with Eagle Water it wouldn't go over the 50%. 3. Bev Barker's January 11, 1991 Decision Memorandum re: FCC rulemaking pursuant to passage of the Americans with Disabilities Act of 1990 (ADA). Commissioner Swisher said he hopes we don't comment to the FCC on the court questions. PUC wouldn't want to get into that. -5- Bev Barker said she thought FCC stated what the Act said and said if you want to comment, let us know. Commissioner Miller said if he was going to comment, would say phone network is a common carrier. People with disabilities have same access. Commissioner Nelson said he didn't think they have the right to determine what is obscene. Commissioner Miller said he couldn't tell, does the law let out enough stuff on cost recovery to comment on? Bev Barker explained what it said. They are not proposing any definite way of doing it. Commissioner Miller asked if this wasn't better for the states? Could do what we want to do. Bev Barker said it seemed like they will have to come up with something they can get feedback on. Seemed to her that they are really looking for opinions from carriers rather than the parties. Commissioner Swisher asked if you choose to not comment the first time, can you still comment later? **Commissioners asked Bev Barker to keep an eye on this. 4. Eileen Benner & Terri Carlock's January 11, 1991 Decision Memorandum re: Gem State REA Loan Application, GEM-T-90-2. Eileen Benner said it is system-wide proposal. Commissioner Nelson said he questioned the cost on 4 - replacement of rural radio system. Eileen Benner explained the rural radio system charges. Commissioner Miller asked if they were serving the six customers? Eileen Benner said they are. They talked as if these were ratepayers. Commissioner Miller said it looks like the current system is going to collapse at some point. Are going to have to do something. Eileen Benner said Consumer Division hasn't gotten a lot of complaints. -6- Terri Carlock said she wondered if Commission should ask them to provide construction information on 93/94 matters. Commissioner Nelson said the bottom line is we have concerns about the investment in 93/94. Terri Carlock said right now they have a committment made with REA on the $20,000. Could further investigate those points. Commissioner Miller asked if they committed to the whole thing? Terri Carlock said they carry it after approval. Commissioner Miller said unless they draw on the loan, they are only tying up the money. Thought we should approve it to the extent it provides funds for the one-party upgrade that we have already approved but beyond that, could approve the whole thing but say question on prudence of these other investments is pretty wide-open. If they want to eliminate that concern, before they do this, best talk to us. Mike Gilmore said he thought it was pretty well thumbs up or down on the certificate, but could question expenditures. Commissioner Miller said they could show the necessity of the investments or take a chance in a rate case later on. Approved with caviats. 5. Eileen Benner's January 11, 1991 Decision Memorandum re: GTE Advice No. 289, Carrier Access Tariff terms. Approved. 6. Regulated Carrier Division Agenda dated January 14, 1991. Approved. 8. Staff's Motion to Dismiss Midvale's Application in MID-T-89-1 and Midvale's Response to Staff Motion. Commissioner Nelson said he thought an additional 90 days should be given to conduct the feasibility study. Don Howell explained the holdup. Randy Lobb said he thought an amended application should be requested. -7- Commissioner Miller agreed with Commissioner Nelson on the 90 day extension. Commission asked that Bergdorf angle be checked. Commissioner Miller said to put in something about doing something in that time, don't just take up Commission time. Extra Item - Terri Carlock said Pacificorp sent in a letter informing Commission of amendment to their dividend stock reinvestment plan. Change is to let them allow up to $25,000 instead of $5,000. Allows them to put more into the company per quarter. Commissioner Miller asked if there was any reason to care? Commissioners thought not. No action will be taken. Meeting adjourned. DATED at Boise, Idaho this day of January, 1991. PRESIDENT COMMISSIONER COMMISSIONER ATTEST: Commission Secretary 0015M