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HomeMy WebLinkAbout19910619.docx Minutes of Decision Meeting June 19, 1991 - 10:00 a.m. In attendance: Commissioners Joe Miller, Ralph Nelson and Marsha H. Smith and staff members Mike Gilmore, Lori Mann, Scott Woodbury, Gary Richardson, Don Oliason, Eileen Benner, Jack Taylor, Bev Barker, Don Howell, Lynn Anderson, Bob Smith, and Myrna Walters.  Also in attendance were:  Woody Richards representing Intermountain Gas Company and Ric Gale from Idaho Power Company. Items discussed were those on the June 19, 1991 Agenda - attached. **Held Item 1 until July 1 meeting. 2.  Bev Barker's June 17, 1991 Decision Memorandum re:  Past Due Date for Utility Bills. Commissioner Miller said his general thought was that what we could decide today was if we wanted to get to this and how.  Wouldn't feel comfortable deciding this based on what we have. Mike Gilmore said if he was an AG from Administration he would question it.  They are not a party.  Think we need another forum for this. Commissioner Nelson said he was opposed to government agencies being given preferential treatment over individuals - that bothers him. Decision was to open a case. Commissioner Miller said it is an issue we should get to.  How should it be handled procedurally?  Process might be important here. Mike Gilmore suggested an oral argument for statutory interpretations. Parties:  all utilities and Department of Administration. Give notice to all agencies and anyone covered by this statute.  Association of Idaho Cities and Association of Idaho Counties should be given notice. Mike Gilmore commented that his guess was that whatever the Commission does, if they don't like it they will go to the legislature. -2- Commissioner Miller asked - would you want to do it for a notice under Myrna Walters' signature, to get it out? Mike Gilmore said he thought it should be done by order. **Will be done by order. Commissioner Miller asked Bev Barker about this. Bev Barker said Mike Gilmore's position is shared by Idaho Power Company.  As far as notice, asked if we want to notify each of the taxing districts in the state, and school districts? Don Howell suggested State Tax Commission has list of every taxing district in the state. Mike Gilmore will get the list from Tax Commission. 10. Intermountain Gas Company July 1, 1991 Decreae Application - INT-G-91-4. Commissioner Miller suggested discussing it and see how far we want to go with it today. Commissioner Smith said Commissioners couldn't figure out from decision memo if rates were going up or down. Scott Woodbury said down.  Staff's recommendation would mean they would go down more. Commissioner Miller asked about the note on the bottom? Scott Woodbury explained. Commissioner Nelson asked if the overall price increase actually was a decrease? Scott Woodbury said that should be a decrease. Commissioner Smith asked if the company had responded to the staff position? Scott Woodbury said yes, they do not agree.  They would recommend that it be processed the way it is with effective date of July 1, set for hearing and if there is any change that it be in the next tracker.  Staff would recommend that the adjustment be made now, take the part that is disputed out and do the rest. Commissioner Miller asked what the difference was? -3- Scott Woodbury said if it goes against the company there will be an adjustment..there will be an adjustment either way.  If staff is wrong and company says put it in place as is, there would be no adjustment. Commissioner Nelson asked - are you saying that this difference will either go into effect July 1, or July 1 next year, it will be corrected either way? Scott Woodbury said it will be corrected either way next year.  If you take company position, then there would be no need for any further adjustment. Commissioner Nelson said maybe we ought to take a little time to get to the right answer. Commissioner Smith asked about the effective date? Commissioner Nelson asked - can't we spread it over 11 months just as easily? Scott woodbury said company prefers that it go into effect July 1. Commissioner Miller said the difficulty with the tracker is, think it is important for the Commissioners to understand what we are doing.   Even though it is a decrease, we should understand what we are doing and the timing here makes that very difficult to do. Scott Woodbury asked if Commissioners want effective date suspended and set for hearing? Commissioner Miller asked what FMC's interest it? Commissioner Smith asked if they were aware of the dispute between company and staff.  Wouldn't be opposed to allowing company's proposal to go into effect while we sort it out. Scott Woodbury said if staff had second position it would be to allow it go to into effect. Commissioner Nelson asked how it would affect billing to do it that way? Woody Richardson said that would be the first choice of the company.  Is a little bit concerned that if it isn't put into effect it would get into the WWP/Potlatch situation.  Would rather make it subject to further refund pending Commission decision. -4- Commissioner Nelson asked about the dollars?  With staff recommendation it would be 2.45 million or another 25% of the decrease.  But that 1/2 million only represents 1/2% in rates.  Would be talking about a fairly diminimus number.  Would allow it to go into effect July 1 and argue about the other $540,000. Commissioner Smith said - and as part of arguing over this, could propose how to get it back to the customers, immediate adjustment, or later. Commissioner Miller agreed the question of immediate adjustment should be an option.  Asked Woody Richards if it would be possible in the future to file these applications 60 days in advance? Woody Richards responded it was dependent on FERC and negotiations in May.  Will get back to the Commissioners about the timing. 5.  Don Howell's June 5, 1991 Decision Memorandum re:  Calling Data from the Three GTE Border Exchanges, Case GTE-T-89-7 and Lynn Anderson's June 14, 1991 Decision Memorandum and Addendum to Don Howell's June 5, 1991 Decision Memorandum. Commissioner Nelson said he thought this time we should tell GTE to apply for the waiver.  If they get that we will look at a plan. Commissioner Miller said he could go along with that. Commissioner Smith suggested staff had better be prepared to monitor GTE's application and see it through. Commissioner Miller said he understood Commissioner Smith's concern about a lot of time spend for little payoff.  But at the same time if there is some possibility of it being valuable to people, ought to make them do it. Commissioner Smith said the advantage of having them do it is we can say we did all we could do.  It was not within our control.  Company can dust off the prior application and file it. **All Commissioners agreed. Mike Gilmore suggested it would be important to show Commission support (community of interest). -5- **Some sort of finding of inequitable treatment of customers. Don Howell said he thought the prior order would give some wording. Commissioner Miller asked if it should say at the time Tensed was done this should have been done.  It is just cleaning up something we should have done before. Mike Gilmore said you could say the other one was to narrowly defined. Commissioner Miller asked what would be the best procedure? Commissioner Smith said at least do a memo of support. Commissioner Miller said GTE may want an order directing them to do this. Don Howell said he assumed they will want an order.  Could authorize company to determine if joint motion should be filed or if we will support theirs. Commissioner Miller asked about the case number on this? Don Howell said this was the Lenore part of Spirit Lake.  Bond issue was one of the issues.  Second issue was August report. Commissioner Miller said we could do the order in that case. Mike Gilmore suggested using the old case number. **Staff is to work this out. Don Howell asked if Commission wants to address other GTE matters? Commissioners said need waiver first - will have Lenore issue. 7.  Beverly Barker's June 12, 1991 Decision Memorandum re:  Boise Water's Proposed Water Conservation Plan. Commissioner Miller asked:  what about conservation plan?  Didn't know if at this point we needed to do any comments?  Thought approval of interim plan with more comprehensive one to be filed later is as much as we should do now. -6- Lori Mann asked about approving rather than just accepting? Commissioner Miller said approving it wouldn't carry any ratemaking weight. Commissioner Smith suggested saying approval doesn't mean anything for future ratemaking. Commissioner Miller thought approval order would have some value to the company. Bev Barker said final order in the rate case ordered company to file conservation plan.  It was a compliance filing.  Company would like something at least from the COmmission saying proceed. Commissioner Miller said that is why he thought approval order would have some value. Bev Barker said her main concern is unless we do something to hold them to the commitment to submit a conservation plan in two years, we may just end up with studying the issue but not coming out with anything. Commissioner Miller said order could reaffirm comprehensive plan submittal. Mike Gilmore suggested two ordering paragraphs - accept the plan and file comprehensive plan. Commissioner Nelson said he views this as a modest proposal. Bev Barker said a lot of what is in their interim proposal is what they are already doing.  Some of it is a step in the right direction.   8.  Jack Taylor's June 14, 1991 Decision memorandum re:  Case No. CUC-E-91-1 Citizens Revised Request for Purchased Electric Power Tracker Increase. Jack Taylor said they have reached a negotiated settlement. Commissioner Nelson asked about the percentage increase? Jack Taylor said it was 7%. Commissioner Nelson said his question is:  increase in rates to customers. -7- Jack Taylor said for every one of the tariffs it is 2.4 mills for each of the groups. Discussed current residential rates.  4.5% for August 4.  56 mills - increase 2.5 more. Commissioner Nelson said question is:  how much will this $66,000 raise rates?  2 mills and current is 56 mills? Increase of approximately 4.5% on residential. Discussed the prior order.  53 mills will be in effect July 1.  Then will add 2 mills to that. Okayed. 9.  Draft Proposed Order in lieu of Decision Memorandum in the matter of the Rate Surcharge of Atlanta Power Company - ATL-E-91-1. Commissioner Miller said the first question he had was on depreciation component on this rate, did he recall from testimony that staff calculates this on 5,000 hours useful life left and company in its application and testimony assumed 10,000 hours of useful life left? If we took the company's assumption, how much would it change the depreciation component? Bob Smith responded.  Said the way Lynn Stevenson originally made the application was guess.  In that calculation he did operate it over the estimated kws of the year rather than 10,000 hours. Don Oliason said he assumed value of that unit to be more than Bob Smith did. Bob Smith said the numbers worked out fairly close together. Don Oliason said if you use 10,000 hours we come out with 1/2. Bob Smith explained the numbers.  Figuring 2 years it would be 1/2 cent. Commissioner Miller said it looked like if we were going to make any adjustment it should be there. Thought diesel rate was reasonable. -8- Commissioner Nelson asked Bob Smith what his number was? 1.31¢. Commissioner Nelson suggested taking company's number since it was a small amount. Bob Smith said remaining life he used was mechanic's estimate. **Accepted company's number. Commissioner Miller said this rate is going to be in effect for July and August.  Question of whether we can charge this for kws is what has to be discussed.  Think it needs to be clear in the order that this rate is for 90 days. Commissioner Smith suggested all billings after July 1. Don Oliason said he talked to Stevenson.  Told him he couldn't start until the order was issued and would have to make meter readings if he wanted to start before July 1. Commissioner Miller said he would like to have this for kws sold in June.  That would track with the waiver from Water Resources.  Putting it in place June 1, won't make him whole.  Everything that has been sold since meters have been read is diesel.  There is no question about that.  There is no possibility we are charging diesel rates for hydro power. Commissioner Smith said would like to make it for bills rendered after July 1. Commissioner Nelson said we are also dropping 4.5 cents surcharge. Commissioner Miller said this is a 90 day deal to correspond with 90 day waiver of Water Resources.  Gives us 90 days to figure this out. Discussed that we are not their representatives to Water Resources. Commissioner Miller wondered about investigating for feasible project. Commissioner Nelson suggested just saying investigating restoration of hydro power. -9- Commissioner Miller said there is no sense telling them to look into this because it is pointless.  Just some general requirement of pursuing restoring of hydro generation. **Give them date. Commissioner Nelson said better say this is a 90 day temporary surcharge.  Give us your report August 15.  September 1 the surcharge goes off. Discussed the #3 requirement. Scott Woodbury asked about specific language that this 10.5 will go off end of August? Discussed going until the end of September. Commissioner Miller questioned language of last finding.  Change it until further notice of the Commission (rather than until full time hydro generation is restored). Discussed getting new generator. Commissioner Nelson said if somebody challenged us on the June 1 date, would we have a fallback date of the order? Mike Gilmore said the date of the order. Commissioner Nelson suggested June 10 and pro rate. Decision:  Effective June 1. Scott Woodbury asked about what Commission is expecting from the company?  Do you want them to provide numbers on the fuel and maintenance costs that they have incurred for those three months, actual costs? Commissioner Miller said he had hoped to make the decision on whether or not the surcharge was going to be on for September, before September. Scott Woodbury said - would propose August 15 for report and calendar a hearing for review the last week of August.  That would save a step. **Hearing to be held in Boise. Meeting adjourned at 11:20 a.m Next page............................................ -10-         DATED at Boise, Idaho this       day of August, 1991.                           PRESIDENT                           COMMISSIONER                           COMMISSIONER ATTEST:                               Commission Secretary 0051M