Loading...
HomeMy WebLinkAbout19911202.docx Minutes of December 2, 1991 Decision Meeting 1:30 p.m. In attendance were: Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Tonya Clark, Gary Richardson, Mike Gilmore, Scott Woodbury, Allan Killian, Keith Hessing, Jim Long, Terri Carlock, Judy Stokes, Madonna Faunce, Stephanie Miller and Myrna Walters.  Also in attendance was Pat Stewart from U. S. West. Commissioner Smith said the Minutes should reflect that the PUC Annual Report was duly filed with the Governor's Office.  Said it was a job well done by our Public Information Officer. Items from the December 2, 1991 Decision Meeting Agenda were discussed as follows. 1.  Regulated Carrier Division Agenda dated December 2, 1991. Approved. 2.  Jim Long's November 21, 1991 Decision Memorandum re:  USWC Tariff Advice 91-7-S, Interest Rate Paid on Deposits for Calendar Year 1992. Approved. 3.  Keith Hessing's November 25, 1992 Decision Memorandum re:  Idaho Power Company's Load Curtailment Plan. Commissioner Nelson asked what classes 1 to 5 are? Keith Hessing explained.  They are set out on Pages 25-26 in report. With that explanation - filing was accepted. Commissioner Miller asked Keith Hessing if there was any reason to wait for the regional plan? Keith Hessing said no.  Didn't know when the regional would be submitted. Commissioner Smith asked if there was still going to be a meeting with Commissioners and staff and Idhao Power, regarding curtailment? Keith Hessing said Idaho Power Company indicated the company does want to schedule such a meeting. -2- Commissioner Smith asked if there wasn't going to be a presentation by others and staff? Keith Hessing explained timing. 4.  Terri Carlock's November 27, 1991 Decision Memorandum re:  Pacificorp Authority to Issue and Sell $200,000,000 No Par Serial Preferred Stock - PAC-S-91-4. Commissioner Nelson said he would approve the application.  Commented he is amazed that their ratio is 50/50 with this much financing. All three commissioners approved the application. 5.  Scott Woodbury's November 25, 1991 Decision Memorandum re:  City of Boise/IPCO Firm Energy Sales Agreement - IPC-E-91-23.     **Tom Faull was in attendance at this time. Commissioner Nelson asked if 1800 kws was .2 of a mw? Tom Faull responded it was. Commissioner Nelson asked what commissioners were being asked? Scott Woodbury said to approve the contract. **It looked okay to Tom Faull. Commissioner Smith asked - what about their being able to submit disputes to the Commission? Scott Woodbury responded it is a standard paragraph. **There were no changes to the proposed order. 6.  Scott Woodbury's November 26, 1991 Decision Memorandum re:  Cogeneration, Inc. (Auger Falls/IPCO) Firm Energy Sales Agreement/Declaratory Ruling - Case No. IPC-E-91-22. Commissioner Miller said he didn't see anything here that caused him concern.  Only major question was K factor question. Commissioner Nelson said he thought it was appropriate to have a review but every three years was quite often.  Thought Idaho Power took the hard line on it.  Asked if -3- had to go one way or the other on this? Scott Woodbury said it is a proposed contract, not signed; have latitude as far as making suggestions and comments. Commissioner Nelson said he would suggest some language that says if the company felt that adequate water rights might be in jeopardy they would have the right to ask for a certificate. Commissioner Miller asked - what would that do to Auger Falls financing? Commissioner Nelson said if there really is a problem that ought to scare them off. Scott Woodbury said the down side is if the K factor has to be applied they loose a percentage of their revenue. Commissioner Nelson said he thought any knowledgeable financer would ask for assurance on the water.  What if they can't get the certificate 10 years down the road? Scott Woodbury said the K factor would kick in and they would loose a percentage. Commissioner Miller said it looks like the facts are such that it wouldn't ever happen.  Water rights are as good as Milner. **Bill Eastlake and Don Oliason were in attendance at this time. Commissioner Nelson asked - what if they don't meet their generation?  Is it covered in the contract? Scott Woodbury said it was.  Contract takes care of overpayment. Commissioner Miller said he could go along with permanent in these circumstances. Commissioner Nelson asked - didn't this establish some sort of junior water right? On the face of it, Commissioners don't have a problem with permanent waiver. Approved. -4- Scott Woodbury said there wasn't a lot of language on the discount rate.  It was negotiated. Commissioner Nelson said he was willing to accept that. Tom Faull said he would give them the permanent waiver.  Think message should be sent it is case by case. 7.  Scott Woodbury's November 26, 1991 Decision Memorandum re:  Sally Sun vs. U S West - USW-T-91-11. Commissioner Smith said there are two motions before the Commission. Commissioner Nelson said he would approve 1 and accept 2.  Would not reconnect here during the period of this investigation.  Think she was abusive with the number and if it was reconnected she would just continue to call.  She was told beforehand that this was not a number where she could get help.  She insisted on calling.  Her correspondence didn't indicate she wouldn't call the number.  Would not reconnect until after the investigation. Scott Woodbury said he thought the facts would show she is continuing to call the number anyway.  In talking to telephone security at the University of Utah they indicate there was a reduction of calls. Commissioner Smith asked about prosecuting her? Scott Woodbury responded she had no previous history but paperwork went to Boise City.  They said they would proceed with it as a misdemeanor.  U. S. West says it isn't their bailiwick.  Think the positions of the parties are pretty apparent.  In talking to county and city prosecutors, this is only incident where the telephone company has disconnected as a means to deal with harassing phone calls. **Syd Lansing was in attendance at this time. Commissioner Miller said at least with respect to the motion to dismiss, would have to be more favorable to Sally Sun.  Just speaking generally, think we may have all been a little presumptuous with the step of involuntary disconnection.  The proposed authority for this is a customer rule which speaks to voluntary disconnection (quoted from the rule).  There is no clear explanation of what that rule contemplated.  It parallels gas and electric rules.  Think what that is talking about is something when you have a condition where physical circumstances threaten health or safety.  It didn't talk about conduct or use of -5- the equipment as a reason for disconnection.  Said as he thought more about the rule, was starting to wonder if this rule was meant for disconnection in circumstances like this.  Our understanding of the facts were somewhat different than those set out by the phone company.  There is now a copy of the log.  It is not as many calls as initially understood.  It doesn't say that there was any harm to anyone because of her calls.  Having a problem seeing that it applies to this situation (the disconnection rule).  Also looks like these calls just started at some time and at some point in time they would stop.  It appears the phone company is thinking of this as a permanent disconnection.  Even if we don't grant the reconnnection today, we have to come up with a solution rather than lifetime disconnection.  Am not prepared to say right now that permanent disconnection is or is not the right remedy. COmmissioner Nelson said he would have to see what solutions people come up with.  Would defer ruling on this until later. Commissioner Smith asked if it would be advantageous to have argument on the motions? Scott Woodbury spoke to the production request. Commissioner Miller asked Commissioner Smith what she thought?  Would like staff's response to Commissioner Miller's argument. Mike Gilmore gave an example of when a disconnection was necessary. Commissioner Nelson said he didn't know how long she was on the phone. Commissioner Miller said he got the impression there is more than one 800 number available that go to the same place.  Could defer until document requests are answered or have oral argument on the matter of the rule thinking before then. Commissioner Smith said it would be helpful to have staff and company analysis of the rule. Scott Woodbury explained staff position of not handling it by disconnecting.  Company should have been pursuing this under the court system. -6- Commissioner Smith asked - wouldn't it be the responsibility of those receiving the calls to prosecute? Scott Woodbury said company could have made efforts to contact the children.  The technology mentioned in production request is whether or not they can block certain numbers.  Said he would like to get an answer to staff question and sit down with the company.  If we are unable to reach a solution, then set the matter for oral argument. Commissioner Miller suggested connection of service in the meantime.  Need to know from AT&T what the capabilities are. Commissioner Smith asked who her long distance carrier was? Told Scott Woodbury to see how soon he could get the response to interrogatories. Commissioner Miller suggested ordering them to reconnect. **Commissioner Smith said Commission would defer ruling on the motions for 10 days for company to get the information to staff.  In the meantime, think they are entitled to local service and toll harassment isn't up to us.   Get back to the Commissioners on this. 8.  Brad Purdy's November 27, 1991 Decision Memorandum re:  Case No. PPL-E-91-2, UP-E-91-4. Commissioner Nelson said he was surprised to see that 50% of the purchase price was blue sky.   Would approve booking in these accounts as they have it. Don Oliason said two units are 10 years old, one is 22 and one is 15.  The newest are the largest of the four. Commissioner Nelson said that might last another 30 years.  These estimated costs do not include anything but normal maintenance. Don Oliason explained maintenance costs. Commissioner Nelson said he would guess that that will be an issue in a case, the amount of benefit actually received.  What are they asking for at this time? Commissioner Miller said it would be an accounting order. Stephanie Miller said what they are worried about is some Commissions will never allow purchase like this. -7- Brad Purdy said they want some kind of assurance that their purchase price will not be disallowed. Commissioner Miller asked - have we established this? Stephanie Miller said no. Mike Gilmore said he was not aware of an order where the Commission had considered a similar situation. Commissioner Nelson said where they are new assets to Idaho, as long as they were expenses prudently incurred, don't have a problem. Commissioner Smith said she would be willing to consider them. Mike Gilmore asked - would it be helpful to say this is not an issue we considered in the past? Commissioner Nelson asked about doing modified procedure? Stephanie Miller mentioned there is no immediate revenue impact. Commissioner Miller said he would be willing to say that this is an open question and we have not ever faced it.  Will consider it at the appropriate time.  Think we should hold the line on not taking Milner in as an everyday event. Commissioner Smith said she would feel more comfortable if we did modified procedure.  It is different from notice of application explaining our position. Commissioner Nelson suggested January 15 to comment. **Put in the modified, the position of the Commission. Stephanie Miller asked if they would say the Commission would be willing to consider it on their facts?  Applied to these facts? Agreed. 9.  Stephanie Miller's November 29, 1991 Decision Memorandum re:  Water Power Tracker - WWP-G-91-1. Commissioner Nelson questioned the $58,000 on Page 3 of the Decision Memorandum. Stephanie Miller explained. -8- Commissioner Miller said he was unsure where we got that. Stephanie Miller said it was what the company was asked for as an incentive, but since they weren't charging an agency fee, would give them $58,000 for DA.  In the last two trackers it has been in there.  Company now has policy with DA.  What they would like to do is look at total cost and compare it with other sources and will then take the cheapest one. Commissioner Nelson said you are saying they want to drop it? Stephanie Miller said yes.  They would like to just pay the cost to DA.  Proposed to do it on a bidding system.  They can't supply DA invoices that back up the assumption that cost of gas is at DA's cost. Commissioner Nelson said he didn't object if they didn't.  Asked also if the $30,000 will true up? Commissioner Miller asked if you true up by customer class, that will take care of it? It would. Discussed putting in a new tariff. It is timing. WWP wants to just true it all up at the next tracker.  They would rather not file tariffs.  Would rather just true it up but will file tariffs. **Commissioner Nelson is in favor of true-up. Commissioner Smith said it was okay with her. Stephanie Miller said true up works very well.  Usually system is set up, nobody should be disadvantaged one way or the other. **True it up separately.  Effective December 9. Commissioner Miller asked to have D2 explained again. Stephanie Miller responded D2 is a charge per therm they pay to NW Pipeline when they transport more than their D2 contract demand.  Explained why it happens.  They have deferred all the D2 access charges and haven't needed out of what is already in D2.  Regular is 10 cents a therm.  D2 overrun is 15¢ a therm. They are only out 5¢ but deferred the whole 15¢. -9- 10. Lori Mann's November 29, 1991 Decision Memorandum re:  Washington Water Power's Commercial and Industrial Conservation Program; Case No. WWP-E-91-8. Commissioner Nelson asked if they have customers waiting for this?  Asked why they shouldn't wait? Commissioner Smith asked - can we ask company to withdraw this and sit down with staff?  Asked if someone could talk to Water Power and ask them to withdraw. Commissioner Miller said we have been rough on WWP and here they are making some effort.  Would like to see them work on it and staff give them words of encouragement. Commissioner Nelson said he wondered if they rushed the filing down because of a customer. Lori Mann said this has no specifics at all with the filing.   **Staff will talk to company. Meeting adjourned. Dated at Boise, ID this 30th day of January, 1992.                      Myrna J. Walters Commission Secretary 0077M,