19920420.docx

Minutes of Decision Meeting
April 20, 1992 - 1:30 p.m.
In attendance were:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Don Howell, Belinda Anderson, Jim Long, Gary Richardson, Randy Lobb, Stephanie Miller, Syd Lansing, Scott Woodbury, Lynn Anderson, Beverly Barker and Myrna Walters.  Also in attendance were Walt Sorg representing GTE and Mary Hobson representing US West.
These Minutes were prepared by Myrna Walters from notes taken by her at the decision meeting.
Items considered at this time were those listed on the April 20, 1992 Agenda.
1.  Regulated Carrier Division Agenda dated April 20, 1992.
Commissioner Nelson said he would move approval.
Commissioners Smith and Miller concurred.
2.  Jim Long's April 16, 1992 Decision Memorandum re:  1992 ITAP Surcharge for Midvale Telephone Exchange, Inc. and staff requested change in tariff language.
Commissioner Smith asked if we had given any notice of this application?
Jim Long replied that we had not.  
Commissioner Miller said he couldn't recall what prior notice was given in the past.
Jim Long said he checked with the phone companies.  No notice was given in '89 but it was only 1 cent.
Commissioner Smith said she thought current bill notification was sufficient.
Jim Long suggested perhaps Commission should have the company run by the staff whatever notice they are going to include with the bill even though Midvale is generally responsible, never know what they might put in the notice.
Commissioner Smith said that would eliminate any problem.
Okayed - company to provide notice (that staff has reviewed).
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3.  Birdelle Brown's April 17, 1992 Decision Memorandum re:  Oregon-Idaho Utilities survey to Silver City Area Residents - ORE-T-92-1 and USW-T-92-2.
Commissioner Nelson said he thought we should wait until the questionnaires are back to see what they say.
Commissioner Smith asked if there was any kind of response needed back to the people or let the company contact them?
Commissioner Miller said at a minimum, do general acknowledgment.  
**Birdelle Brown and Terri Carlock were in attendance at this time.
Birdelle Brown said 18 responses have been received - 9 are for it and 9 against.
Said she has had one call from an existing customer.  Think he wants to ask for hearing on the same issue.  Some of them are very positive, though.
Commissioner Smith asked - how about if we tell the companies that we will approve this if they give all the EAS the four-party line can handle.
Birdelle Brown said she called Mr. Beck and he said he cannot provide EAS to the area.  
Commissioner Smith commented there ought to be a way to put EAS on one payphone.
Lynn Anderson said it is part of the Melba exchange.
Eileen Benner said they plan to physically remove the old plant.
Lynn Anderson said they can do an FX through Oregon-Idaho routing.
**Keith Hessing was in attendance at this time.
Commissioner Smith asked what does Commission wants Birdelle Brown to do?
**Standard acknowledgment by Commission Secretary, Myrna Walters, is to be sent to each person answering the questionnaire.
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4.  Randy Lobb's April 17, 1992 Decision Memorandum re:  Case No. GTE-T-91-7 - Tariff Advice 91-14 - 911 Emergency Telephone Service.
Commissioner Nelson commented.  Wouldn't mind if they want 911 and it costs more now than when there is an upgrade, guess they can factor that into their decision.  There should be a rebate involved.  It looks like the value of that changeover isn't lost.  Maybe that is not true.
Randy Lobb said rates are based on 5-year amortization.  After 3 years GTE would not have fully recovered the costs.  They do have certain annual expenses associated with this.  You should have to see how much of the costs are recovered after whatever period of time you are looking at.  Could be rebated.
Commissioner Smith said Post Falls had it 3 years before it was initiated.
Randy Lobb said no, only a couple of months.
Commissioner Nelson said is seemed like the value of the enhancements is not lost with that switch that is removed.  That upgrade still has some value.
Commissioner Miller said he was not sure he has thought all the way through on this.  Problem Commissioner Nelson brought up made him favor weighted averaging.  That does to some extent solve that problem and even though averaging has its disadvantages, it seems to him as a general rule, you wouldn't set basic rates on this... set it on service territory.  So averaging here would not be contrary.  Would make it more likely that communities that still have mechanical technology would find that 911 was averaged and encourage territories-wide existence of 911 where if individual towns that are still mechanical switches, do it at all.  Didn't seem that customers where digital are available didn't provide a subsidy, it was a necessary service.  Even though it is becoming harder and harder to support averaging, this seems an appropriate place to do it.
Commissioner Nelson said if the county goes to the system, they would have to do this averaging because of the different systems.  If LATA went to 911, there would be digital and mechanical and there would be an average within the county.
Commissioner Miller said if you didn't average, you would have problems with the different rates to explain.
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The end to the surcharge is in effect averaging.  
Commissioner Nelson asked - don't these municipalities and counties get the money through the surcharge?
Commissioner Smith said it may or may not cover it all.
Randy Lobb said you might have cases of two different kinds of switches and you might decide you want 911 as your budget provides.  County might choose to only provide 911 through digital, not mechanical.  This would put them on even footing.  Some other decision would be made as to which would get the service.
Commissioner Miller said the weighted average would come fairly close to recovering the revenue requirement.  Theoretically it should.
Randy Lobb said it depends on which switches are enabled.
Commissioner Nelson asked - would this weighted average move as GTE moves to digitalizing its switches?
Randy Lobb said he didn't anticipate that, but you are looking into the furture.  You might be able to adjust it on a specific bill basis going forward.  Think it would be fairly simple to do that knowing the costs incurred and the type of switches you have and spread that cost.
Commissioner Nelson asked - on Item 4 for decision, is the basic 911 put in without any fancy equipment on a mechanical switch because you don't have ANI?
Randy Lobb said historically they have not charged for that.  Real expense is providing ANI.  
Commissioner Smith said company seems pretty wedded to its tariffs.  Was wondering if the Commission did provide that it is not appropriate to individually price due to type of switch, is there anyway you could come out with then for averaging?
Randy Lobb replied - we really couldn't settle on anything particular.  Asked for an average so we came up with that together.  If they got direction from Commission they might be agreeable to averaging.  
Walt Sorg said if the averaging is something that would expedite the process, GTE would be willing to work with staff.
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Commissioner Smith said for Mr. Sorg to consider himself so advised.  Let commissioners know what staff and GTE comes up with.
Randy Lobb asked about mandatory enabling?
Commissioner Miller said he thought normally customers should have right to choose services, etc., - that they choose and they should pay for what they get or not for what they don't get.  Customers shouldn't be required to pay for some services they don't get.  Can see on the other hand the advantage of getting everybody a superior service.  If this weren't a service that had such a big social/health concern, his opinion would be the customer gets what he pays for.  But in this circumstance, the social value of getting 911 with ANI is an important enough social concern that it is not wrong to push people towards that.
Commissioner Nelson said he would agree with Commissioner Miller that initially he was not too excited about averaging but because of the prohibitive costs, hopefully over time Commission can work the cost down with installation of digital service.
Randy Lobb said the tariff has been suspended twice.  It expires next Monday.  Don't know if parties can agree and get an order out by Monday.
Commissioner Miller asked if it could be suspended by stipulation?
Commissioner Smith suggested either get in a new tariff by Friday or agreement to extend or denial of the tariff.
Walt Sorg said okay - will work with Randy Lobb on extension of the extension.
5.  Lynn Anderson's April 17, 1992 Decision Memorandum re:  Troy and Moscow Petition for Mutual Toll-Free Calling.
Commissioner Nelson asked if it was intralata?
**Troy Telephone is owned by TDS.
Commissioner Smith asked - do we have a Judge Greene waiver in this?
Don Howell replied - Troy didn't need a waiver.  If GTE does it, all you would do is you would probably make Moscow an exception (two-way).
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Commissioner Smith said if Troy did it, they would have a modest increase and USF would pick it up.
Don Howell asked if Lynn Anderson computed Troy's losses?
Commissioner Smith suggested opening an investigation, gather the information and see what it is going to cost and go up and tell those people.
Syd Lansing clarified they have not done it for Idaho.
Agreed.
Commissioner Miller asked - how do we do this?
Commissioner Smith said she thought it would be got to just open an investigation.
**Give some notice to all the carriers like in Albion.
6.  Scott Woodbury's April 17, 1992 Decision Memorandum re:  Washington Water Power PCA Refund Expiration April 30, 1992.
Commissioner Smith said it sounds like we don't have much to do about it.  
**Decision was to okay by Minute Entry.
7.  IPC-E-91-24 - Firm Energy Sales Agreement IPC/H.E.E.D. Co., Inc. Schedule 86 Non-Firm Energy Agreement.
Commissioner Smith asked - can't we adjust the 86 Schedule amount to collect $85,000 over time?  Why would they wiggle out of $85,000?
Scott Woodbury responded.  Company is troubled with the small QFs.  Are worried that they could not prevail in a court of law (re:  liquidated damages).  Company filed along with the application, report of generation.  If the company figures are right they have only received $14,000.  It is only a 55 kw project.
Commissioner Smith asked who was responsible for the gross miscalculation?
Scott Woodbury asked Bart Kline about liquidated damages being adjusted for projects this size.  This may dictate against levelized rates for small kws.
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Commissioner Nelson said liquidated damages is a penalty because Idaho Power company is relying on that to run the system.
Scott Woodbury said he thought one of the reasons they are not going after it is the deep pockets aren't there.  They estimated that the judgement would be significantly less than the fallout number and they would not be able to enforce it.
Commissioner Smith said okay.
Commissioner Nelson moved approval.
Commissioner Miller said he would grant the relief requested.
8.  Terri Carlock's April 17, 1992 Decision Memorandum re:  Midvale Telephone Company - Authority to Issue $276,000 REA Debt - Case No. MID-T-92-1.
Approved.
Adjourned at 2:40 p.m.
Dated at Boise, Idaho, this 17th day of June, 1992.
Myrna J. Walters
Commission Secretary
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