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HomeMy WebLinkAbout19920312.docx MINUTES OF DECISION MEETING March 12, 1992 - 1:30 p.m. In attendance: Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Randy Lobb, Stephanie Miller, Syd Lansing, Jim Long, Gary Richardson, Don Howell, Lori Mann, Birdelle Brown, Madonna Faunce, Brad Purdy, Keith Hessing and Myrna Walters.  Also in attendance was Mary Hobson of U. S. West. Items from the March 12, 1992 Agenda were acted on as follows.   The following minutes are transcribed from notes taken at the decision meeting by Myrna J. Walters, Commission Secretary. 1.  Regulated Carrier Division Agenda dated March 12, 1992. Approved. 2.  Bob Horton's March 10, 1992 Decision Memorandum re:  General Plastics, Inc., Boise, Idaho, Case No. M-7748-1. Commissioner Miller said he would give him the temporary authority. Commissioner Nelson said if we require a statement of support in order to get this temporary on quick turn around, we will have someone who will sign them as a matter of course, contending to have used them.  Rule is not working as intended. Commissioner Smith said we don't really have the personnel to look at intent. Commissioner Nelson said on one individual we could look for his name.   Commissioner Smith said she thought the issue we would leap on was giving him statewide instead of Southern Idaho. Commissioner Nelson said he would give him temporary authority. Two votes for temporary authority. 3.  Birdelle Brown's March 9, 1992 Decision Memorandum re:  GTE Advice 92-4 - Restructure Billing and CollectingService. -2- Commissioner Smith asked how this was going to work? Birdelle Brown explained that Walt Sorg of GTE is not going to be able to get back to staff before the requested effective date of March 16, so company asked for suspension. Commissioner Smith said she would move that Commission suspend for 5 months and 30 days. Don Howell commented it would have been easier if they had just changed the effective date. **Tariff will be suspended. **Two votes for suspension - Commissioners Smith and Miller. **Lynn Anderson and Eileen Benner were in attendance at this time. 4.  Randy Lobb's March 10, 1992 Decision Memorandum re:  Water Quality Complaint from Customers in the Avondale Portion of Hayden Pines Water Company - Case No. HPN-W-91-1. Commissioner Nelson said Bud Ford needs to hire an engineer and do a feasibility study. Randy Lobb asked how extensive a study? Commissioner Miller asked Randy Lobb what his idea was of devising testing without a consultant? Randy Lobb said Bud Ford must have some basis by which he chooses to proceed with system flushing and chlorination.  He should have some base information to determine if he is improving anything. Commissioner Miller asked if there were identifiable standards for that? Randy Lobb explained.  If there is residual, he should provide information that it is being reduced in the system. Commissioner Miller asked - why do you get that? Randy Lobb said you have to do testing at the well.  You can test for metals, then go around and test around the system.  Explained the testing.  You need to establish some basis to see if you are making progress.  Otherwise he is going to proceed with this and say it is getting better.   -3- Commissioner Miller asked what role DEQ could play in this? Randy Lobb said he didn't know all the tests there are.  Maybe they don't know themselves, so there could be a consultant hired.  If he can't prove that he is making progress, he would have to hire a consultant.  Seems before that point, undertake a least costly assessment.  The costs may be considerably less. Commissioner Miller asked - can we say that within 3 months or whatever, he has to submit to the Commission a plan that meets these concerns, and establish specific criteria or failing to do that he has to hire a consultant?  If he can't meet the requirements, then hire a consultant. Randy Lobb said the sooner he is required to submit a plan and begin to assess the benefits of his program, the sooner we can make a determination and either go on to something else or say he has a handle on it.  During the summertime, there will be a lot of increased demand which will flush the system.  By the end of the summer he should be able to document it.  If he has a good testing program in place, he can make comparisons from pre-summer to post-summer. Commissioner Miller asked Randy Lobb if he has worked with Ford? Randy Lobb said Mr. Ford has been out of town.  Have talked with Mr. Row of the company.  DEQ is anxious to participate.  All we need to do is hold a meeting to see what kind of testing needs to be done. Commissioner Smith asked how long should we give them to have a plan? Commissioner Nelson said 60 days. Commissioner Smith said she was thinking 45 days. Randy Lobb said after the first meeting, will better be able to say what is the right timeframe. **45 days. Randy Lobb said there is incentive there to do the right thing. Lori Mann will pick a date certain for a response from the company. -4- 5.  Brad Purdy's March 11, 1992 Decision Memorandum re:  Utah Power & Light Company and Monsanto Power Supply Agreement - Case No. UPL-E-92-2. Commissioner Smith asked what kind of notice Commission has given? Brad Purdy said a notice of application. Commissioner Smith asked if other state commissions should get notice? Decided there would be little impact. Commissioner Miller asked Keith Hessing how Monsanto rates got linked to FMC rates? Stephanie Miller responded - it was when they negotiated a contract. Commissioner Miller asked in this the linkage is broken? Stephanie Miller said yes. Commissioner Miller asked if it was a good thing? Stephanie Miller said she thought so.  There has always been the question of who can intervene in these cases. *Jack Taylor and Tonya Clark were in attendance at this time. Commissioner Miller asked what analysis had been done on the application - how much contribution do they make to overhead? Keith Hessing said they have an exhibit that goes along with the contract that demonstrates what the variable costs  are and  what contributions above that in fixed costs will be.  Talked to them about these numbers and it looked like everything was in place to protect the ratepayer. **Beverly Barker was in attendance at this time. Commissioner Miller asked if there was a way to tell us how much of a contribution is made? Keith Hessing said it relates to average power supply cost.  They have numbers that quantify that. Commissioner Nelson asked - would it be more than under the current contract? -5- Keith Hessing replied - yes.   Commissioner Nelson commented - you have to guess right now they are not making any contribution to fixed costs. Stephanie Miller said the thing we consider the most important is that if it was under the tariffed rate number,  the customers would be disadvantaged. Approved amendment. 6.  Lynn Anderson's March 11, 1992 Decision Memorandum re:  Hope EAS Petition. Commissioner Nelson said he thought it was interesting how much of the toll market is going to the MARC plans, especially in Bayview, Hope and Spirit Lake. Commissioner Smith asked Lynn Anderson if he really wanted to put it in the other cases? Commissioner Miller asked if we were set for hearings - Spirit Lake and Bayview? Lynn Anderson responded.  Decided on hearing in Spirit Lake, not sure of Bayview. **Decided it was waiting for report from GTE. Commissioner Miller asked how long it would take to get the data? Commissioner Smith asked how many hearings the Commission was going to have to have -    1.  Spirit Lake, 2.  Bayview, 3.  Sandpoint? Commissioner Smith said she thought the reason to combine the cases was because it affected Sandpoint people.   Discussed Sandpoint hearing. Don Howell said Bayview is EAS both directions. Commissioner Nelson suggested a hearing in Spirit Lake, none in Bayview and one in Clark Fork.  Already had extensive hearing with Bayview people. -6- Commissioner Miller said - could have hearing on Item 7 and then have hearing on Item 6 - Toll and OCP Report and then go to EAS. Lynn Anderson responded. Commissioner Smith said she thought we needed to sit down with Don Howell and pick out hearing locations and hearing dates.  Should have it in Spirit Lake if their rates will possibly go up.   **Commissioners will sit down with Don Howell, attorney assigned to the cases, to set hearing dates and places. **Discussion went back to the boundary dispute cases - from March 6 agenda. Birdelle Brown said parties are trying to work around facility locations and not just customer locations. Commissioner Miller said if the boundaries can be described clearly, that would be fine - if not, thought 3/4 should go to one party and 1/4 to the other. Meeting adjourned. Dated at Boise, Idaho, this 9th day of April, 1992. Myrna J. Walters Commission Secretary 0097M