19920226.docx

MINUTES OF DECISION MEETING
February 26, 1992 - 1:30 p.m.
In attendance were:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Don Howell, Scott Woodbury, Gary Richardson, Don Oliason, Dave Hattaway, Syd Lansing, Randy Lobb, Jack Taylor, Stephanie Miller, Dave Schunke, Bill Eastlake, Tonya Clark and Myrna Walters.
The following minutes were transcribed from notes taken at this decision meeting by Myrna Walters, Commission Secretary.
Items from the February 26, 1992 Decision Meeting Agenda were discussed as follows.
1.  Further discussion on David Hattaway's February 20, 1992 Decision Memorandum re:  Average Unit Cost Update for Line Extension Tariff Schedule 71 and his February 26, 1992 Decision Memorandum - Follow-up Average Unit Cost Data Update for Line Extension Tariff Schedule 71.
Dave Hattaway reported that Idaho Power said okay to two rates.  $114 will be used for the more complex boring and 17 and 21 for push.
Commissioner Smith asked - will it be immediately apparent from the outset which rate will be used?
Dave Hattaway said it would have to be looked at next year.  It is a judgement thing by person putting it in.  Concern was they would automatically use the $114 rate.  There are two safety checks.  Customer gets to look at the quote.  Second if that is not what is done it is an unusual condition and it is subject to refund.
Commissioner Miller said it looked like it was as good as we can get.
Commissioner Smith said if you give the lower quote, during construction you come up against unusual circumstances you can go back.   Ratepayers are kind of hanging if it costs more.  
Commissioner Nelson said he thought they had responded and it is going to take some judgement.  Will have to look over their shoulder.
Approved.
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2.  Further discussion on Scott Woodbury's February 20, 1992 Decision Memorandum re:  Case Nos. WWP-E-92-1/WWP-G-92-1 - Demand Side Management (DSM).
Scott Woodbury explained the faxed letter from Davis Wright Tremaine - Inland Northwest expressed concern.  They felt they can meet all the demand the program seems to invision.  They don't want WWP to go into competition with them.
Commissioner Nelson said he didn't see where WWP said they are going to do the conversions.
Bill Eastlake said he asked WWP about that.  Thought the trade group might see that as a threat.
Commissioner Miller said he had a question for Commissioners and staff.  At any point preceding the filing, did the Commission or staff do anything that would give WWP reason to believe that this application would be approved on a very short 45-day non-hearing process?  Were they lead to believe this would happen?
Scott Woodbury said it was the company's idea all along.  Asked what they would have to do to get that procedure?  Staff told them what was needed.  Did tell them there were policy questions there.  No promises were given.
Stephanie Miller said the company was told that staff would get it before the Commission to decide on procedures on a fast track.
Bill Eastlake said they sent us a proposed filing on Thursday.  They showed up the next Monday.  They have seen it as trivial.  Said he thought of it as more than that.  Think company went back feeling good.  We then asked lots of questions.  One thing they changed was they dropped any reference to modified procedure.  Think they have not yet understood that we have questions.  There is only one technical issue we are concerned about that the fuel efficiency filing is a raw fuel switching.  Could be thought of as only gas promotion.  They only require 78% efficiency.
Commissioner Nelson said he thought that number should be changed.  That number leads him to believe it is just a fuel switching program.
Bill Eastlake said lost revenues is one he thinks Commission needs to come up with a decision on.
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Commissioner Nelson said he tried to come up with some position on this.  Reason you have the demand side management is because of growth and you are meeting that through demand side growth.  You are not losing revenues, what you are losing is return on investment on these programs.  Just looking at their financial statement they are losing the 12¢ a share.
Stephanie Miller said - but they are capitalizing interest on that.  They are receiving it in the future.
Commented she did believe staff had a position.
Commissioner Smith said her point is it doesn't seem like the usual thing that can go modified.  Need a forum to air these things especially if we are getting letters from outside interests.  You can try to accommodate the company to be speedy.
Commissioner Nelson said we want to be encouraging but if there are questions, $45,000,000 is a lot of money.  Don't think they want to go ahead until they know how we are going to treat it.
Commissioner Miller said he thought in the order we should acknowledge that it is big step and compliment them and let them know that it does appear to be a step forward to their commitment to DSM but nevertheless the policy issues presented just can't be decided adequately anyway than with hearing.
Bill Eastlake said on lost revenue issue, staff ought to be the one to put out a position first.  We have not been able to successfully engage the company in dialog on this.  Think staff needs to take a position first.  On that one should go first and see how they respond.
Scott Woodbury said procedurally he had a problem with going that route.  Think company should file their testimony first.  Think it is presumptous to think there are only going to be two parties in the case.  Have to open it up for intervention.
Commissioner Nelson said there would be nothing wrong with staff publishing a statement on their position.
Commissioner Miller said it is a relatively-extensive application.  Wonder if we couldn't let everybody file rather than make company make another filing, have everybody file a responding analysis of their testimony and company file rebuttal.  Asked if that would work?  Can't see what we would gain by having company do another filing.
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Stephanie Miller said the company seems to think they have said everything they can say.
Bill Eastlake spoke to the call he got from Sandusky on low income.
Dave Schunke said in terms of the schedule, is expecting there will be some additional data requests and we will have to include sufficient time to response;nde to those.
Commissioner Miller suggested having staff and company work out a schedule.
**Need dates and hearing place.
Commissioner Miller suggested it should be done in their service territory.  Our show of good faith to the company would be a quick resolution.  Should try to get to hearing quickly.
Hearing location - Post Falls.
Commissioner Nelson said he would like to implement enough of this program to go ahead with it but when you are talking $40,000,000, need time for everyone's input.  It is a pretty complete application but do have some questions.
Meeting adjourned.
**Item 3 - Midvale Telephone - MID-T-89-1 - held at this time.
Dated at Boise, Idaho, this 26th day of March, 1992.
Myrna J. Walters
Commission Secretary
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