19910408.docx

Minutes of Decision Meeting
April 8, 1991 - 1:45 p.m.
In attendance were:
Commissioners Joe Miller, Ralph Nelson and Marsha H. Smith and staff members Bev Barker, Dave Hattaway, Mike Gilmore, Terri Carlock, Stephanie Miller, Gary Richardson, Madonna Faunce and Myrna Walters.
Matters discussed at this meeting were those listed on the attached Agenda.
1.  Bev Barker's March 20, 1991 Decision Memorandum re:  Boise Water Tariffs.
Bev Barker said she talked to Hepler on Friday about this.  He indicated that he thought they could get the tariff revisions in in a couple of months.  Evidently what he wanted to do is some general clean-up with the narrative section of the tariff.  That is a bigger job.  It would have been helpful if he had indicated that to her earlier.  Said it was agreed if they would be in by May 31, it would be acceptable to her.  If it isn't in by May 31, there would be more than ample reason to go on our own.
Commissioner Miller said he wondered if it shouldn't be followed up with a letter from the Commission saying May 31 must be firm and will expect them to have it done by that day.
Bev Barker said it might be a good reinforcement.
Commissioner Smith said it sounded okay to her.
Bev Barker asked who should do the letter?
Decision:  Mike Gilmore will draft a letter for the Commission President's signature.
Bev Barker said she also talked to Helpler about persistent problems.  They are going to meet in a couple of weeks.  Was concerned about being able to talk to Helper without Booe being present.
Stephanie Miller said it is not really clear whether the problem is Booe or Helpler.  It might be he is going to tell Bev Barker what is going on.
Item 2 - J. David Hattaway's April 5, 1991 Decision Memorandum re:  Average Unit Cost Update for line Extension Tariff Schedule 71.
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Commissioner Miller asked Dave Hattaway if the process he is engaged in with the company is beneficial and if he was getting cost study that he felt comfortable with that Commission could sign off on?
Dave Hattaway said yes.  The procedure is better than what they were using before.  It still has problems but they are doing the best they can to make it so the average cost reflects what an average cost should be.  Said that was his target and that is what they are aiming at too.  Informally have been talking to some folks that with formal may not have been able to talk to them.  Have been able to examine overhead rates.  Think it is working out.  They had some personnel changes this year but the folks handling it now have dealt with average cost since it was okayed by the Commission.  There is some continuity.
Commissioner Miller asked - these are matters that are important but are unlikely to become rate case issues that other parties would have a big interest in?  Only potential drawback is that if we are taking up matters that other intervenors would have a big interest in in a rate case and are effectively closing them out of this process, that is a concern.
Dave Hattaway said at this point wouldn't think there are others who would be concerned.  If the costs keep bumping around and he was a developer, it would peak his interest.  But as of right now, can't see it would interest him.
Commissioner Miller asked Stephanie Miller if this was a good process Dave was assisting in?
Stephanie Miller said yes.  It is real sensitive to actual construction work they do and it is particularly sensitive to construction on Milner, generation.  Few years back, reached an agreement with them, then terminated it.  They aggregated those into distribution and transmission overheads and we only dealt with ASC on distribution.  We might have Dave talk to them about seggregating them.  
After discussion, decision was:  Informal process should continue.
3.  Eileen Benner's April 8, 1991 Decision Memorandum re:  GTE Advice No. 91-2; Telecommunication Service Priority.
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Commissioner Miller asked Eileen Benner what further investigation she contemplated?
Eileen Benner said if we wanted to fight this, it is going to be difficult.  They developed costs on a national basis.  It is a whole category of functions they feel has to be performed.  They took average cost over their whole operation and then they come back to the states and multiply that by number of circuits and that is how they come up with their revenue requirement.  Have their manual that says how long it will take (time wise) on each function.  Would have to say we think it is ridiculous to spend this much time verifying.  
Commissioner Miller asked if it was $12,000 a year?
Eileen Benner said it is actually over a 10 year period.  It is all based on how many circuits in each state.  Revenue to the company is minimal impact on the company ($4.50 a month).
Commissioner Smith asked if anybody can ask for this?
Eileen Benner responded.  Said it has to go through the FCC.  You have forms that have to be filled out.  Have to be submitted to federal office.  Then they come back to the company and company gives appropriate classification.
Commissioner Smith asked if Washington was looking into it?
Eileen Benner said she has talked with Washington's analyst.  She has concerns but it is going to be recommended for approval.
Commissioner Miller asked who the customers of this are?
Eileen Benner said state and federal agencies, emergency service providers.
Commissioner Smith asked what they are going to do if no one signs up?  Think some agencies are miffed at having to sign up for it.
Eileen Benner said Washington looked into U. S. West's proposal and made changes.
Explained GTE's proposal to get to the $4.50.
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Commissioner Miller said would have to be something more than cost to get him interested.
Eileen Benner said they feel they will recover full costs.  Am sure federal agencies will be required to sign up.  Explained there are those on priority who will be on it in 3 years if they don't sign up for it.  
Commissioner Smith said to the extent that we previously denied U. S. West signing for priority new service, how can we approve this?
Eileen Benner said that is different.  We approved ESP for U. S. West.
Explained what expedited treatment costs.
Commissioner Smith asked what new service gets priority treatment under this service?
Eileen Benner gave example of Civil Defense - it has nothing to do with residential.
Commissioner Miller said we think there are going to be about 70 Idaho customers (70 lines, could be 7 to 10 lines each).
Asked how many complaints we have had?
Eileen Benner said none - they don't know about it.  Only complaints on U. S. West was Disaster Services Bureau.  It was more palatable when the cost was lowered.
In Washington, there were agencies complaining.
Commissioner Miller said lets say we were going to do something for these customers, what would we do?  How much time would you spend on it?
Eileen Benner said she would have to confer with Stephanie Miller on where to go with this.  They have the data that says it is going to take an hours worth of time to do this.  But how can she dispute the time it is going to take to identify a circuit.  We could tell them we would like a complete look at their entire services program and ask why it costs $4.50 for it.  There is improper balance on costs for different services.  Don't know where she would go.
**Don Howell was in attendance at this time.
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Commissioner Smith said she thinks their charges are outrageous but don't think Eileen Benner should spend any time on it.
**Commissioner Nelson was in attendance at this time.
Commissioner Miller explained where we are on this item.
Commissioner Nelson asked - is there some reason why the people who incur these expenses pay it?  Is it a non-necessary service?
Eileen Benner said it depends on whether or not you want your government agencies to have service first when everyone has lost service.  What this program does is say heres a list of those who get service restored first.
Commissioner Nelson asked why the additional cost?
Eileen Benner responded - because of computer programing, etc.
Commissioner Miller said he thought it was a small amount of money, some amount of customers, difficult investigatory process with slight chance of coming up with anything substantial.
Eileen Benner said that is why she stopped there.
Commissioner Nelson asked how many customers in GTE service area it would affect?
Eileen Benner said probably a handful of agencies (69 lines altogether is what they are projecting).
Explained that the grandfathering period would be over in 3 years.
After discussion:  Approved.
Meeting adjourned.
Signatures on next page .....
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        DATED at Boise, Idaho this       day of May, 1991.

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