19920306.docx

Minutes of Decision Meeting
March 6, 1992 - 1:30 p.m.
In attendance:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Birdelle Brown, Syd Lansing, Randy Lobb, Allan Killian, Jim Long, Lynn Anderson, Belinda Anderson, Stephanie Miller, Gary Richardson, Don Howell and Myrna Walters.  Also in attendance was:  Walt Sorg of GTE.
Items from the March 6, 1992 decision meeting agenda were considered as follow.  These minutes are transcribed from notes taken at the decision meeting.
1.  Regulated Carrier Division Agenda dated March 6, 1992.
Commissioner Nelson moved approval.
Other two commissioners concurred.
2.  Randy Lobb's February 25, 1992 Decision Memorandum re:  Midvale Telephone's Application to Serve Yellowpine - Case No. MID-T-89-1.
Commissioner Miller asked if they were ready to go with this now?
Randy Lobb said he was not sure of the status of their loan application.
Don Howell responded.  Wiggins wants to put two areas in one application.
Commissioner Nelson commented he might have trouble approving financing against Idaho operations for an Arizona project he wasn't aware of.
Don Howell said the Arizona project was new to him also, until yesterday.
Syd Lansing said Arizona hasn't given their okay to the Arizona project.  Thought REA wouldn't let them do both projects together.
Commissioner Smith said she had some questions.  On page 4, when it talked about electricity being a problem, have they talked to Idaho Power?
Randy Lobb said he thought so.
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Commissioner Smith spoke to Idaho Power Company looking for a demonstration project for a photovoltaic project.
Randy Lobb will check with Idaho Power Company to see if this is a possibility.
Commissioner Smith said on Page 7 when they referenced a Contel representative, have they talked to GTE?
Don Howell said they have talked to GTE about the overlapping certificate.
Randy Lobb said he thought this happened before the merger.
Commissioner Smith said she thought they should do a post-merger discussion.
Don Howell said he talked to Williams, if the overlap of certificate is a problem, he wouldn't serve that.
**Discussed the overlapping.
Commissioner Smith said given our experience with Item 5 on this agenda, would suggest not doing overlapping certificates.  Especially if we know about it ahead of time.
Commissioner Miller said if they are serious about going ahead, don't see how they can go ahead without hearing.
Commissioner Smith asked if it would be unreasonable to send it out again because of Title 62 enactment?
Don Howell said the Commission has had an inquiry from Cambridge but they haven't filed an application.  They don't want to make a fight out of it.  Told them to decide if they want to file.  We could put intervention notice in the notice of hearing.
Commissioner Smith said when we get to the stage of hearing, have already passed up Title 62 requirement.
Don Howell said the 60 day period has passed.
Commissioner Nelson asked about hearing location?
Randy Lobb said it appears most requesting service are Warren/Burghdorf exchange.
**Mary Hobson was in attendance at this time.
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**Was decided the hearing should be in McCall.
Randy Lobb explained his position.  Said he had a problem with the amount of money.  
3.  Birdelle Brown's March 3, 1992 Decision Memorandum re:  USW-Advice No. 92-2-S - Direct-Inward-Dialing Service.
Commissioner Miller asked if this was Title 61, Title 62 companion filing?
Birdelle Brown said it was.
Commissioner Miller asked if there were Title 62 customers?
Birdelle Brown said she thought it was 3800 - blocks of 20 in 1992.  Total DID lines - 38 customers.
Commissioner Nelson said he would move approval.
Agreed to by other two customers.
4.  Birdelle Brown's March 3, 1992 Decision Memorandum re:  GTE Advice 92-4 - Restructure Billing and Collecting Service.
Birdelle Brown said Commission had said billing and collecting would be detariffed.  Now the question is:  Do you want to put your approval stamp on it, put it in the book without stamp, or throw it out?
Commissioner Miller said he thought the Commission needed to look at the decision on whether or not it should be detariffed.  Still might want to know if it is above cost or below cost.  One question he had is what does the staff do to verify that this is not a subsidized rate?
Birdelle Brown said company submitted information that reflected their costs and the revenue is above the cost.
Commissioner Miller asked - cost in what sense?
Birdelle Brown was not sure.
**Decision was to table it until March 12.
5.  Birdelle Brown's March 4, 1992 Decision Memorandum re:  Certificates of Convenience and Necessity - Case Nos. POT-T-91-3, INL-T-91-3, USW-T-91-10, GTE-T-91-5.
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Commissioner Miller said he wasn't able to ascertain whether the customer is on the east side or the west side.
Birdelle Brown pointed out where the customer was - just west of the line.
Commissioner Smith said there is a reference to unusually installed facilities, what are they?
Commissioner Nelson asked how recent it was was if he was complaining about service?
**Mary Hobson from U. S. West responded it was a cable facility.  Don't know what the customer situation is today.
Commissioner Miller asked - so we don't know if U. S. West has facilities in the west?
Commissioner Nelson said without being sure of that, thought it would be reasonable to give Inland west and U. S. east and grandfather that customer.
Commissioner Miller said if he had been in the east half it would have been easy to give east half to U. S. West.
Commissioner Smith said the other thing you could do is if you want to keep dividing by section and quarter lines but don't know if it makes sense geographically, other choice would be to give U. S. West 1/4 and Inland 3/4.  Asked - have any idea of what potential for customers is?
Commissioner Nelson asked if these weren't all larger farms?
Commissioner Smith said since the west boundary is already in U. S. West's certificated area, why not give Inland everything west of it.
Birdelle Brown said U. S. West didn't give boundaries.
Lynn Anderson said the line should be described, though.
Mike Gilmore said they may just have a ridge line there.
Commissioner Miller suggested giving U. S. West 3/4ths.
There are only two customers in the section.
Commissioner Smith said she would propose to give Inland everything west of the existing U. S. West boundaries and give U. S. West everything east of it.
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Commissioner Nelson asked who serves Section 34?
**Section 34 is GTE.
Commissioner Miller said he thought it was easier to give U. S. West 3/4ths and describe it.  Southwest quarter of Section 33 goes to Inland.  Rest to U. S. West.  
**Don't know where the cable is on the ground.  Then best go back to Commissioner Smith's proposal.
Commissioner Smith asked - wouldn't it be uneconomic to have cable through an area you can't serve?
**Discussion went to Leon.
Commissioner Smith said he looked like this is an area already certificated to GTE but not served now.  Her suggestion was to give it to Inland.
**Agreed to give it to Inland.
Discussion went back to Lenore.
Commissioner Miller said even if the facilities are somewhere else, think the simplest way is to give 3/4ths.
Was decided Commissioners need a better map - asked that the item be brought back to the decision meeting after a better map was procured.
6.  Don Howell's March 4, 1992 Decision Memorandum re:  Union Pacific's Out-of-Service Exemption for a Portion of the North Side Branch.
Commissioner Miller said his attitude was Commission can consider this as "not" a true exemption.  Current use will be satisfactorily maintained.  Tracks aren't going to be removed.
Commissioner Smith said he didn't think a hearing was necessary.
**Do not file it with the ICC.
7.  Don Howell's March 4, 1992 Decision Memorandum re:  UP's Request to Close Six Freight Agencies, Case No. UP-RR-91-3.
Commissioner Smith said the only one she wants closed is Shoshone.  Know for sure we want hearings in Nampa and Aberdeen.  Perhaps a hearing in Ashton.
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Don Howell said the railroad says if there is going to be resistance they will withdraw their applications for closures.  Based on what we know about these two agencies both in the record and out, keeping them open is futile.
Commissioner Nelson said he thought Commission should go to Nampa and Aberdeen and call it good.
**Okay on Montpelier.
'
Close Shoshone - discussed Ashton.
Don Howell said what Commission did say was they ship a considerable amount of what from Shoshone and Ashton and there were no objections.
Mike Gilmore commented Ashton is the end of the line, Shoshone is not.
Commissioner Smith suggested telling them we are struggling with Ashton.
**Grant request of Union, for data on matters set for hearings we are holding and the same on #6 (request of Wheat Commission for information).  Get it on the record.
8.  Don Howell's March 5, 1992 Decision Memorandum re:  GTE's service in its Weippe Exchange.
Commissioner Nelson said it doesn't say whether the problem is plant or outside switch.  Thought there was a bit of discussion about this.
Randy Lobb said they could never identify any problem with the switch.  Think it was a combination of several things.  Customer questionnaires were sent out.  Problem is they just didn't respond back.  Those they did hear from they worked with and resolved their problems.  There was nothing chronic they could identify.  Sent out 174 questionnaires and got back 21.  Worked with 8.  
Commissioners decided company has taken adequate steps.  
9.  Jim Long's March 5, 1992 Decision Memorandum re:  1992 ITAP report to the Legislature.
Commissioner Nelson said he had discussed his concern with Jim Long.  Thought it was important to get in the report how many were new hook-ups.
Commissioner Smith said she didn't think it should actually be a decision memo.  Thought Commissioners could formulate a report to the Legislature in another form.  Asked if there were any comments?
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Don Howell said although it is a document on printed paper, it doesn't become your report until you say it is.
Commissioner Miller asked if we haven't treated them as staff analysis and distanced ourselves from them (the report).  Thought each Commissioners should just submit their suggestions to staff.   
Jim Long will get comments from Commissioners.
Discussion went back to Item 5.
Commissioner Smith asked about getting a better map?
Birdelle Brown said she would contact the companies to get that.
Birdelle Brown then asked the Commissioners about Item 4 - if they wanted a detailed report on subsidization or should an accountant look at this?
Commissioner Miller said initially a review and if you come to the conclusion that you are not absolutely satisfied, then someway would like to look at the data himself or have it presented to the Commissioners someway.  If you can conclude that it is a fully compensatory rate, just let Commissioners know.
**Want to know the cost methodology.
**Item 10 will be held at this time.
Commissioner Miller said he did think the rules could be adopted when the legislation is settled.  Was pleased with the comments received.
**Extra Item - Boise Water letter from Bergquist to Terri Carlock re:  security issuances.
**Terri Carlock was in attendance at this time.  Commissioners asked her about the letter.
Terri Carlock said she talked to Mike Gilmore about the letter.  It was his opinion that if it was General Waterworks they weren't required to file with Idaho Commission.  Said it was used for local service.
Commissioner Nelson said if Boise Water isn't responsible for paying it back, maybe that is correct.  Bergquist didn't think it needed to go the Commission at all.
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Mike Gilmore said he didn't think we required approval of Intermountain Gas Company holding company financings.
Terri Carlock said Commission did.  Approved all Citizens Utilities'.
Commissioner Nelson said there must be a loan from General Waterworks to Boise Water.
**Mike Gilmore explained.
Commissioner Nelson said if that is in fact the case,  don't think that we are going to see that shown as $30,000,000 of equity.
Terri Carlock said Bergquist is to send her the financial information.  Between the parent and subsidiary there isn't actual shares of stock.  We don't have to approve that.  It is paid in capital.
Said that is the way Bergquist is claiming that happens.  Did want to see all the information.  That is the claim of what is happening.
**Commissioner Miller commented he thought Commission should see some analysis of it.
Commissioner Smith suggested that Mike Gilmore lean on them to get the information in.
**Staff is going to get more information - then will get a legal analysis.  Will report back to the Commissioners.
Meeting adjourned.
Dated at Boise, Idaho, this 6th day of April, 1992.
Myrna J. Walters
Commission Secretary
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