19911021.docx

Minutes of Decision Meeting
October 21, 1991 - 1:30 p.m.
In attendance were:
Commissioners Joe Miller, Ralph Nelson and Marsha Smith and staff members Mike Gilmore, Scott Woodbury, Tonya Clark, Lori Mann, Don Oliason, Judy Stokes, Dave Schunke, Bev Barker, Stephanie Miller, Brad Purdy, Randy Lobb, Tom Faull, Belinda Anderson, Syd Lansing, Gary Richardson and Myrna Walters.
Items from the October 21, 1991 Decision Meeting were discussed as follows.
1.  Election of President.
Commissioner Miller said he was tendering his resignation as President of the Commission, effective November 1.  Asked that it be duly noted in the Minutes.
Was pleased to nominate Marsha Smith to succeed him as president, effective November 1.
Vote was unanimous.
2.  Regulated Carrier Division Agenda dated October 21, 1991.
Commissioner Nelson moved approved of the Regulated Carrier Division agenda.
Unanimously approved.
3.  Motor Carrier Hearing concerning Michael T. Nixon dba Blue Mountain Express, M-7677-2.
Commissioner Nelson, hearing chairman, reported Barrett was a protestant.  Went to great lengths to show that Nixon's not a good guy.  However, Nixon showed up with five people testifying in his favor.  Testified they were willing to back him up.  Nobody questioned financial ability.  Think there was a real question on whether he intended to serve the entire state.  He said he would expect a certificate limited to North Idaho.  Do want to accept that.  Said it was a lengthy hearing.  Nixon did come up with a lot of support as to his reputation generally as a good guy.  Some of the Barrett testimony was later rebutted.  Testified he was bootlegging.
Tonya Clark said problems brought out at the hearing were with Transit.
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Commissioner Smith asked if the problems were something he caused?
Tonya Clark said she didn't know.  At the hearing it was obvious there were too many people involved.  Explained the situation.
Commissioner Nelson said the real problem was the timing.  Had some weather damage, it was a mess.
Went to the questions on Page 5 of the Decision Memo.
1.  Fit, willing and able to perform services.  On the issue of finding need for his service, he had letters of support.  Testimony itself came down to where it wasn't going to affect the other carriers financially.  People who moved secondary hauls are Oakes and Bud Lamm who just do it on the side.  Neither of them were there.  So, would grant the application to Nixon with the caveat that it was requested to originate or terminate in Northern Idaho.  
**General Commodities.
Commissioner Miller said limit to geographic territory seemed justified in this case because he agreed to it.
Commissioner Nelson spoke to what his equipment consisted of.
**Bill Eastlake and Jack Taylor were in attendance at this time.
4.  Lori Mann's October 17, 1991 Decision Memorandum re:  GTE Application Regarding Depreciation.
Syd Lansing explained the matter - said GTE didn't want to back up and make adjustments.
Commissioner Nelson said it has very little effect.
Commissioner Smith asked - and FCC hasn't done anything with it?        
Syd Lansing said he didn't think so.  
Commissioner Nelson said he guessed he would say '92 is okay with me if it is okay with the FCC.  Think it should be consistent.
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Commissioner Smith said okay.
Commissioner Miller asked Syd Lansing if he participated in the three-way conference?
Syd Lansing said he and Randy Lobb did.  They were satisfied with the results.
Commissioner Miller asked how it should handled.
**Decision was to do an order.
5.  Staff Motion for Continuance of Tariff Suspension Case No. USW-T-91-8.
After brief discussion of the matter, staff's motion for continuance of the suspension was granted.
6.  Rulemaking for Gas Customer Service Standards - Case No. 31.C-R-91-1.  Discussed at September 27, 1991 Decision Meeting.  Dave Schunke was to review proposed rule.
Dave Schunke said he had now gone through the rules.  Changes made didn't have any concerns from a technical point of view.  But, Bev Barker had some wording changes.
Bev Barker said she didn't have any problem with technical part but did think there was a problem with understanding them.  If they are going to be added to consumer rules, they should be understandable.  For instance, 1e - setting the charge for meter testing, which we don't have in place now, in talking to Mike Gilmore, since these rules were out there someplace, now that we are aware of them, we may want to get clarification of wording.  Am not so sure what they mean.  Some of it comes down to definition.
Spoke to different types of meters.  They refer to "set date".  They also talk about card records - orofice meters- if we try to write rules so people can understand them, think they should be clearer.
Dave Schunke said he didn't disagree if we want to add some definitions.  That might help a broader sector of people who pick them up and read them.  Might need some clarification.
Commissioner Smith said perhaps there comes a point where every technical detail needs to be reduced to something anyone could understand.  If further definition agrees it would increase the operation of the rule, but think you could carry it to extreme which would be unnecessary.
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Commissioner Miller asked - on the legislative format, all we are adopting is deletions or additions?
Mike Gilmore said yes.  Everything else is the existing rule.
Bev Barker said if we went ahead and made the changes and moved them to customer relations rules and they are reviewed, we could incorporate changes and then after we have a little bit of history under our belt, review them.
Commissioner Miller said that made sense to him.
Commissioner Miller agreed.
7.  "Formal" complaint of Sally Ann Schuetzle aka Sally Sun vs U. S. West Communications.
Commissioner Miller explained the complaint.  Asked Judy Stokes to give the background.
Commissioner Smith first asked if the complainant was dangerous?
Judy Stokes replied she is only dangerous with her letter writing.  Reviewed the situation.  She (Judy Stokes) had talked to a University of Utah detective who thinks Sally Sun is mentally ill.  They traced the calls to her.  There were 17 calls alone on September 2.  The main problem is that access to the 1-800 numbers of AirMed is being tied up.  When she gets on the phone she goes on and on.  Explained how U. S. West got into the situation.
Commissioner Miller asked if there was a way we can send her an anonymous denial?  :Don't always have to issue a summons?
Commissioner Smith said the Commission would want a written response from U. S. West.  Have to request U. S. West to respond.  Then we can send her a letter saying the disconnection was justified.
**Mike Gilmore is to get response from U. S. West - should be in sufficient detail.
8.  Scott Woodbury's October 18, 1991 Decision Memorandum re:  Case Nos. WWP-E-91-6; IPC-E-91-16; UPL-E-91-1/PPL-91-1 Avoided Cost Methodology-Adjustable Portion.
Questions on page 4 of the Decision Memorandum were considered.
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1.  RE:  Specific components of the variable avoided cost rate methodology
Calculation limited to Schedule 5 identified accounts?  Yes.
Labor wasn't there for a reason.
Scott Woodbury said - and accept WWP's answer regarding the coal costs, difference being labor.
**Explained Peter Richardson's letter.
9.  Dave Schunke's October 18, 1991 Decision Memorandum re:  Case No. UPL-E-91-2.
Commissioner Smith asked why they didn't just do what we told them in the order?
Dave Schunke said he didn't know why they didn't.  In previous orders we told them to take steps toward the target rate.  We specified what those steps should be.  There is no language in the order saying they have to make those steps, but exhibits include those steps.  Seemed to him that is the direction the Commission wanted to go.  When company negotiated current amendment they recalculated the steps using the most recent useage and it comes up a slightly different number but depending on year to year useage it could vary a lot.
Commissioner Miller asked Dave Schunke if he had discussed these concerns with the company?
Dave Schunke said he had with UPL but not NuWest.  UPL said they had no strong feelings.  They could reissue the contract.
Commissioner Nelson asked - will they be consistent next year?
Dave Schunke said we ought to stick with method as laid out and there won't be a question each year.  Make the incremental change each year.
Commissioner Nelson said he was not concerned because it is not much of a difference.
Commissioner Miller said he wondered if we shouldn't give NuWest a copy of the memo and have them write a letter.  
Dave Schunke is to send a copy over and ask for their response, if any.
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Mike Gilmore said to tell them it will be taken up at next week's decision meeting and ask if they want to comment.
Commissioner Nelson said he was not very interested in pursuing it for $62,000.  Could pursue it next year.  
Commissioner Smith said this would give them an opportunity for input.  they don't know what position staff took and don't know how to respond.
Dave Schunke said his concern was the method, not the amount.
**Will be held until next decision meeting.
10. Brad Purdy's October 18, 1991 Decision Memorandum re:  Case No. IPC-E-91-15--Peter A. Bowler Complaint vs. Idaho Power Company Respondent.
Commissioner Miller said putting aside the legal questions, didn't know if other Commissioners had a chance to read Bowler's rebuttal, and putting aside the specific merits on the limits of Wylie, did raise interesting question about hydro relicensing, etc.  He  is saying since Commission is proactive in integrated resource planning, and since we are requiring that, which is a change from the prior method of regulation, since we are more interested in planning, that there is new relationship between the Commission and the company with respect to this sort of activity and Commission should be much more involved as opposed to typical, traditional way of doing things.  Didn't know how he felt about that.  At this point our involvement in relicensing is minimal at best.
Commissioner Nelson said we have always thought we didn't have resources to be represented at FERC with regard to relicensing.  It was difficult to comp up with that extra budget.  Have already addressed in part, didn't see in their RMR, list of resources of how they would bring them in, or cost.  We commented that would be an improvement in the report.
Tom Faull said there were cost adjustments for a wide variety of projects.  They kept Wylie because it appeared to be in reasonable range.
Commissioner Nelson said it appears that there is still quite a bit of potential on the Snake and guess he was concerned that they moved toward developing too much of it when there may be cheaper alternatives.
Tom Faull said with Wylie they really don't know.  We may want to review the license application.
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Don Oliason said he has been following licensing and relicensing, Mike Gilmore felt we could get into line to receive documents so we would know what is going on.
Commissioner Miller said he wondered about having the Company comment on Bowler's idea about relationship between Company and Commission.  Don't know if there is enough there to get our teeth into.
Tom Faull said it seemed to him that we are a little premature on that.  If it is preliminary they are still gathering data.
Commissioner Miller said he thought he was saying Commission ought to get intimately involved and say to the company, the best thing to do with Wylie is for mitigation of other license..whether we could ever come to that conclusion ourselves and say that to the company, as part of the planning process, don't know.
Tom Faull said he thought it was appropriate to ask the company about that.
Brad Purdy explained how Bowler framed it.  There is policy and there is the law.
Commissioner Nelson said he is asking us to make findings on other questions that would take a lot of investigation.  Don't know if we have the authority to make those decisions.
Brad Purdy explained what Bowler is asking of the Commission.
Commissioner Nelson said he didn't know if we could do that with Idaho Power.
Mike Gilmore explained if we did what Bowler wanted, it could have impact on Rock Creek.
Commissioner Miller said Rock Creek had such bad facts.  If they have a FERC license to build it, we don't have authority to prevent them from building it.
Brad Purdy said you do have authority to deny ratebasing.  It is different saying we will not give certificate and include it in ratebase, but if they want to do it as an independent venture, company can do that.
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Mike Gilmore said he didn't think we can directly stop it.  We can do things indirectly.
Commissioner Nelson said he thought we should be involved in licensing.  At least we are looking over their filings.
Commissioner Miller asked if Commission could start proceeding to see if Commission can do something before FERC licensing?
Brad Purdy said nothing stops Commission from getting into planning, etc.  It can give an opinion on a project.  Company can go ahead and build, but warning can be given ahead of time...can get involved ahead of time.  Procedure we have now, on Milner and Swan Falls, they had already entered into contracts for many millions.
Mike Gilmore said Swan Falls was an existing project.
Commissioner Miller said it seemed to him that in Milner and Swan Falls, company changed acquisition from post to pre approval, essentially and in those two circumstances, it was p]projects.  But if that is going to be the approach and it is not going to be post construction rate review, should we be more involved earlier so that as in those cases, it just doesn't get handed to us with few choices.  Is just looking for advice.
Tom Faull said he thought it would be appropriate to open a case asking company for license application (copies of federal).  Could open a case or not open a case, but review terms and conditions and following the matters at FERC.  The license application has an entire appendix that is the technical information, etc.  That would be the time to look at it and see if it appears to be prudent acquisition.  Then could advise company of your concerns.
Commissioner Smith said - could view it the same way as railroad abandonments.  You could be making the company litigate it twice.
Commissioner Miller said Bowler is saying way before FERC application, Commission should be determining whether or not there should be a certificate at all.  
Commissioner Smith said she thought management of the company belongs with the company, not the Commission.
Commissioner Miller said integrated resource planning does change that model somewhat.  Commission has opportunity to influence.
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Commissioner Smith said we are using MRMs as information gathering tool.
Commissioner Miller said he thought Commission went a little further than that.  It is not substituting our judgement for theirs.
Commissioner Smith said it is an opportunity to influence but not call the shots.
Bill Eastlake said he thought Bowler was over-reacting.  For us to say anything negative now.. they have not studied far enough to see where it might fit into the resource stack.  Numbers could go anywhere.
Tom Faull said - don't want to tell them to abandon.
Brad Purdy said you are still free to become involved in the early stages.  If nothing else, informal.
Don Oliason said as soon as we start reviewing, that will give us some insight into its value.
Commissioner Smith said - don't want to hear anymore oral argument, would grant Idaho Power's motion to dismiss without prejudice.
Commissioner Nelson said he thought the complaint was premature.
Commissioner Miller said on the jurisdictional grounds or whatever our jurisdiction is or facts are, it is premature.
Mike Gilmore suggested dismissing it but don't give up jurisdiction.
Note that the filing has caused us to consider and will continue to decide when we will take active part.
Brad Purdy asked if Commissioners wanted to be specific?
Commissioner Nelson commented - don't need order to get on their service lists.
Brad Purdy will work on an order.
Meeting adjourned.
Signature on next page ..............
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        DATED at Boise, Idaho this       day of January, 1992.
Myrna J. Walters
Commission Secretary
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