19920723.docx

MINUTES OF DECISION MEETING
July 23, 1992 - 1:30 p.m.
In attendance were:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Lori Mann, Don Howell, Mary Friddle, Eileen Benner, Belinda Anderson, Tonya Clark, Birdelle Brown, Lynn Anderson, Jim Long, Beverly Barker and Myrna Walters.  Also in attendance were Ron Lightfoot and Mary Hobson of U. S. West.  
Commissioner Smith said - we will start with the one item Regulated Carrier Agenda.
1.  Regulated Carrier Division Agenda dated July 23, 1992.
Commissioner Nelson said he would move approval.
Other Commissioners concurred.
2.  Greyhound's Closure of the Rupert Agency.
Commissioner Smith asked Mary Friddle how she heard from Mr. Alexander?
Mary Friddle replied - by phone.  He indicated he would work with the PUC.
Commissioner Smith said she would like to establish that we are entitled to notice before closure of an agency.
Asked Lori Mann if that is the way she read the statute?
Lori Mann said it was.
Commissioner Smith said she thought something should be done, perhaps a consent agreement.
Commissioner Nelson said he thought the Rupert agency was more principle than substance.
Commissioner Miller said his attitude would be different if we thought they had intentionally done it, that if it was a good faith mistake, but didn't know if it is appropriate in this case.
Tonya Clark said there have been three notifications.
Commissioner Miller said in that case it might be justified.
Tonya Clark reviewed what happens with consent agreements.
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Commissioner Miller said we could authorize staff to negotiate for a fine they think is reasonable - civil penalty.
Agree upon amount they are going to pay to avoid hearing or the $2,000 per day fine.
3A.  Birdelle Brown's July 6, 1992 Decision Memorandum re:  Joint Application of U S WEST and Oregon-Idaho Utilities to Transfer Service of Silver City from U S WEST to Oregon-Idaho Utilities - Case Nos. ORE-T-92-1 and US-T-92-2.
Commissioner Miller said he was wondering if this proposal had been discussed with the existing U S West customers?  They will undoubtedly dislike giving away free calling.  Does this ease the pain at all?
Birdelle Brown said she didn't think anyone has discussed it with them.  Might not have been inclined to talk to them about it before the Commissioners okayed that.  
Commissioner Miller said he guessed their response is going to be kind of predictable.
Commissioner Smith asked - so the credit would be applied next year?
Birdelle Brown said - assuming they are hooked up next year.  It will be a onetime shot.
Commissioner Smith said with the understanding that the order will require that the company coordinate toll-free emergency call numbers, would okay it.
Agreed to by all Commissioners.
Commissioner Miller said he thought the public hearing was very helpful.  Thought this was a reasonable way to do it.
3.  Bev Barker's July 7, 1992 Decision Memorandum re:  Lon Davis Complaint Against Idaho Power.
Commissioner Smith asked Bev Barker wht would happen if he and the other 9 people all went in individually and filled out the same paperwork and asked for the same estimate?
Bev Barker replied - probably Idaho Power would say one of you has to be the initial applicant.  There is no way under the current tariff to do multiple applicants for one line.  It wouldn't have provisions for how it works.
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Commissioner Smith asked - they only want to give one $2,000 credit?
Bev Barker said yes.  There is only one cabin now.  It is another party's.  Davis has a bare lot.
Commissioner Nelson said they could go together as a partnership with one applicant.  Company doesn't want to run power up there for free unless they are willing to get some return on it.
Bev Barker said she talked with Davis about working out an agreement with the neighbors privately.  He said no one else is willing to pay anything to get service in there.  They know if they wait five years they can hook up for free.  This is the game you get into with these recreational properties.
Discussed extending it out ten years.
**Woody Richards was in attendance at this time.
Commissioner Nelson said he thought we could tell him we approve a ten year payback.
**Extend to 10 years with the option of extending further. This is the least drastic change to the tariff.
Bev Barker asked about someone with a similar situation in the area, should he be given the same option?
Discussed that situation.
Decision was to deal with the other person if he applies.
No at this time.
Mike Gilmore asked what forum this should take?
Commissioner Miller said he thought it should be as low key as possible.  Suggested Bev Barker do a letter to Mr. Davis.
**Other Commissioners agreed Bev Barker should send the response.
4.  Beverly Barker's July 13, 1992 Decision Memorandum re:  Petition for Clarificaiton of Idaho Power's Procedures for Billing Master-Metered Customers (IPC-E-92-16).
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Commissioner Nelson suggested allowing Idaho Power to charge the 4.919.
Commissioner Miller said maybe for today, should follow Bev's suggestion and do modified procedure.
Commissioner Smith said - should probably give him the chance.
Beverly Barker said depending on the mix of each in a court, there is more or less impact.
Commissioner Smith said she guessed she wouldn't want to grant higher rate for more useage.
Commissioner Nelson said he would.  Bill old amount to master metering and defer the amount.
Commissioner Miller asked Bev Barker if she had heard from anyother mobile home courts?
Bev said no.
Only this one person complained.
Mike Gilmore asked if you want it out on modified, do you want it for 21 days?
Commissioner Smith suggested shortening it up some.
**Two weeks was decided on.
Commissioner Smith said she would like to put it out on modified and ask the company for more information on "truing up".  Looks like a timing problem.
Mike Gilmore asked if all mobile home courts were residential?
Bev Barker said no.  Some are commercial.
Mike Gilmore explained the rate for mobile home parks.
Decision:  Put out on "short" modified time.  Ask company to clear it up a little bit.
5.  Jim Long's July 13, 1992 Decision Memorandum re:  Advice 92-5-S from U. S. West Communications Requesting Exchange Boundary Change between Nampa and Caldwell.
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Approved.
6.  Mike Gilmore's Proposed Order Issuing a Complaint Against Title 62 Companies That Have Not Remitted USF Surcharges or Filed Annual USF Reports.
Commissioner Smith asked if these were ones who are flagrant only?
Commissioner Miller said if they are relatively bad guys, lets go with it.
Commissioner Smith said her only thought was moving it back and giving them date to comply, but it looked fine.
Discussed hearing date.
Commissioner Miller asked about using a hearing examiner?
Tentative date chosed was either August 20 or 21.
**Unless Commission gets some disputes will use hearing examiner.
7.  Mike Gilmore's July 17, 1992 Decision Memorandum re:  WestStar Complaint against Washington Water Power Company.
Commissioner Nelson said it didn't appear that WWP is involved in the court case so we could continue to treat it as an informal complaint and ask staff to check into it.
Commissioner Miller said he thought the analysis was correct.  We are not precluded from proceeding, primarily for that reason.  Don't know whether it should be informal or make it a formal proceeding.  There are advantages and disadvantages to both.
Commissioner Nelson said it didn't hurt for staff to do a little more work and make a recommendation.  Have an engineer go up and look at the poles and see if it is a significant problem.
Mike Gilmore said there is the question of discriminatory favoring over one company over the others.
Commissioner Miller said if this going on much longer, it needs to be formal.  For code compliance, engineer could look at it, but for discrimination issue, would almost have to have hearing.  First step could be staff investigation and then decision on whether to go formal.
Decision was:  Do it that way.
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8.  Belinda Anderson's July 21, 1992 Decision Memorandum re:  U S WEST'S Changes to Public Access Lines (PAL) Tariff.
Commissioner Nelson asked - where does 181A come from?
Belinda Anderson said it is a general order, a rulemaking order.
Approved.
9.  Lynn Anderson's July 21, 1992 Decision Memorandum re:  Bayview EAS Petition Filed on 7-13-92.
Commissioenr Nelson said he thought the proper response is to set a hearing for northern Idaho and get something going on these.
Commissioner Smith asked if it should be part of the other cases?
**After discussion, decision was to roll it into GTE-T-92-2.
Commissioner Miller said some global solution to that northern Idaho problem has to be found, whatever the solution.  Should consider that will solve some kind of immediate neighborhood problem but it doesn't solve problems of high toll rates between larger exchanges which are probably as irritating to residents there as high bills for short distances.  Think we should consider sometime a rate solution as well.
10. Birdelle Brown's July 21, 1992 Decision Memorandum re:  Advice No. 92-5 U S WEST Northern's Tariff Revision to Remove the Current Restriction from Mixing Flat and Measured Service.
Commissioner Miller asked Lynn Anderson about the second page of his memo.
Lynn Anderson responded.
Commissioner Miller said if that is a convenience for individual customers and it allows them to manage their lives in a way that is good for them, was trying to see any disadvantage of it.
Lynn Anderson said it is a benefit to those who subscribe but company gets less revenue.
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Commissioner Smith said to assume that other ratepayers are disadvantaged, don't you have to assume rates set doesn't cover relevant costs?
Lynn Anderson said in telephone in particular, we haven't decided the direct cost.
Commissioner Smith said when we set the flat rate for LMS, it was 1/2 and there was an analysis done of average number of calls made on the lines and flat rate was set accordingly.
Lynn Anderson explained the price.
Birdelle Brown explained Lynn Anderson's premise.  Company says they determined that people would not abuse this.  They would have each line for a separate purpose if they wanted to buy two lines.
Mike Gilmore said the cost shaving Lynn Anderson is talking about doesn't come out until a rate case.
Commissioner Miller said it does seem the potential harm to others is relatively speculative, but it does increase customer choices.  Think we should approve it and if you can think of data to keep track of, do that in the order.
Commissioner Nelson asked about the notice question?
Commissioner Miller said he thought there ought to be customer notice for prohibitions.
Commissioner Nelson suggested putting something in their bill.
Discussed notice.
Lynn Anderson said he thought probably a newspaper ad.  Could notify every customer who has two lines but that wouldn't get to others.
**Decision was there must be some notice.
10A.  Brad Purdy's J:uly 21, 1992 Decision Memorandum re:  SOU-W-92-1.  Application of South Company Water Company for Approval of a Main Extension Contract.
 Commissioner Nelson said he couldn't imagine impacting anyone.
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Commissioner Miller said a short comment period might be okay.
Brad Purdy said they feel comforable with an order the first week of August.  
**Do modified procedure and unless adverse comments are received, issue order automatically.
11. Eileen Benner's July 21, 1992 Decision Memorandum re:  Universal Service Fund Industry Board Membership; USF Auditor's Report.
Commissioner Smith asked Eileen Benner if it was necessary to change our rules to do what she wants?
Eileen Benner said it is in the order.
Commissioner Smith said she thought the board should be staffed with productive people.
Decision:  Let board decide what to do.
12. Mike Gilmore's July 21 Memorandum and Draft Response to Kent Searle.
Commissioner Smith said one of the questions here is what should be the form of the response and who should it come from as well as the content.
Does it require more than our usual rule of - the response in the same form as the inquiry?
First reaction is what tariff he should buy out of or if there is a tariff for it or should there be a contract?  Second thought was  - didn't have enough information to decide.
Commissioner Miller said interconnection for cellular and radio is something he never had to know anything about.  Don't know what the norm is, what the respective industries expect.  Seemed to him could open up the question as to what the policy should be as what tariff applies to every local exchange company.
Commissioner Smith said to her what he wants to purchase is a business line.  Albion's tariff seems to be clear on resale of local service.  That is provided solely for an individual.  It wouldn't seem to be a normal business line.  
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Other question is are there other providers who are being charged business rate?
Belinda Anderson asked Ron Lightfoot about this.
Ron Lightfoot said he didn't know if there was a contract - most of the time there is a contract with these people.  Can't speak to this specific case.
Belinda Anderson said when she checked with John Souba, she asked him to confirm it.  Know that Cellular serves and Motorola.
Ron Lightfoot commented - anyone with a two-way radio can make a patch.
Commissioner Miller said it is an interesting question.
Belinda Anderson said it is an issue we have not looked at.
Commissioner Miller said as an unanswered question, sort of feel a little more comfortable treating this as a formal complaint.  We know what Cellular plans to do.
**Treat it as petition for declaratory ruling.  Let staff do discovery.
Eileen Benner asked - will we be able to extend this to include both kinds of access?  Didn't want all the decisions to be applicable to mobile and not cellular.
Lynn Anderson said radio and celleular is the same.  
Commissioner Smith said when you are just trying to address this case, keep it to this case.
Said Commission could make sure all Albion customers are treated the same.
Commissioner Miller asked if this didn't lend itself to a general policy for this type of customers.
Commissioner Smith asked - couldn't you get all the facts on this and rule on it?  Then wait for someone to say it should apply to all companies?
Commissioner Miller said it seemed to him there are some cases it is difficult to keep a fence around.  Then there are pressures in the case and you end up not being able to confine it to a specific case.  Is this a case where that will happen?
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Commissionert Smith said why turn it into a generic brew-haha at this point.
Mike Gilmore a notice going out saying we have this request for declaratory ruling.
Declaratory ruling would get wider distribution.
Commissioner Nelson said he kind of liked the idea of addressing the broader issue eventually.  Think giving everybody notice is a good idea.  If we decide it is a simple hook-up, at least everyone has had a chance to participate.
Eileen Benner said she has never seen on a list of access providers, from LECs, a mobile or cellular company.  Think there is a suspicion in this case that he will provide local service where it is not available.  Don't know enough about mobile operations to make a judgement.
Commissioner Smith said the other idea was that Albion move their boundary.
Start it out as a declaratory ruling with these parties.  If it develops pressure to get bigger, deal with that.
Belinda Anderson explained Searle's request.
Commissioner Smith said perhaps the Commission is looking at this all wrong.
Notice that goes out wouldn't need to put in all the details.
Albion is to respond.  Anyone else is to intervene.
13.  Hayden Pines Water Company Supreme Court Decision and Proposed Settlement.
Commissioner Smith said this was an item that could go into executive session.
Commissioner Nelson said he would so move that the Commission go into executive session.
Seconded by Commissioner Miller.
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Regular Decision Meeting was adjourned and Executive Session convened in Commissioner Smith's office.
Dated at Boise, Idaho, this 1st day of October, 1992.
Myrna J. Walters
Commission Secretary
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EXECUTIVE SESSION
July 23, 1992
TOPIC DISCUSSED:
Hayden Pines Water Company Supreme Court Decision and Proposed Settlement.
In attendance at this time were:  Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members, Lori Mann, Mike Gilmore, Dave Hattaway and Myrna Walters.
Commissioner Smith asked - in response to a remand from the Supreme Court, do we reopen to see what the amount is?
Mike Gilmore said that would take a petition for reconsideration.
Commissioner Smith said this is a specific item that has been in litigation.  From her point of view, it is important to remind the court that we are the fact-finding body.  It was remanded to find out what the right number is and allow the company to recover that.  $15,000 was an estimate.  Hearing would give the company the opportunity to give the actuals.  
Mike Gilmore said it is not a bad idea to remind them.
Commissioner Smith said she thought it was a bad precedent to accept the number.
Mike Gilmore said in the petition we could suggest a rewording of one sentence.
Commissioner Miller said - ask them to remand to us to determine the proper amount.  We would allow the amount that has actually been incurred.  It would have to be based on that last test year - recalculation with that number in it.  Think you would want to point out you did treat it - so you would assure the court that it would go in correctly.  
Lori Mann said he was hired to do 1991 reconciliation.
Commissioner Miller asked what the test year was?
Lori Mann said no one in particular.  Had '86 test year that was cleaned up to '88.
Commissioner Nelson said - had finished the rate case and went back and looked at issues.  Do you think this is the place where we need to remind the court or has it gone on long enough?  Does this case become precedent on "fact finding"?
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Commissioner Miller said on the broad legal issues it is a good opinion and on this one issue, doesn't purport any fact or law.
Mike Gilmore said even if the petition for reconsideration was denied, wouldn't hurt to remind them about a "future" number.
Commissioner Miller said it was a unanimous decision so it is not a good sign for reconsideration.
Commissioner Smith said she though we could issue an order saying we have a Supreme Court decision saying we should allow accounting expenses and you let us know what that is.  
Commissioner Miller said he agreed that the court telling us is wrong (about the specific expenses).  The other point is at this point you could say the opinion is pretty quirky deal on this one point and say we would never use this as precedential.  But if you petition for reconsideration and it is denied if you make those long arguments, then at least in some people's eyes that opinion takes on more weight than now.  The case when it is printed in West, will have rehearing denied.  You always think that a case that has rehearing denied was one that really meant something.  
Commissioner Smith asked if a petition for clarification is what we want?  Asked if this was what the Commissioners  want to do?  Could say - opinion is fine with us but weren't sure what you meant.
Commissioner Miller said you could argue that at the time we issued the initial order we didn't know what the amount was.  They are now looking back and they are saying you should put in the $15,000.
Mike Gilmore said you could give them $15,000 and next day start new case and reduce the rates.
Dave Hattaway reported staff will be auditing the company August 10 - 15.
Discussed Woody Richards' proposal.
Lori Mann reviewed it.
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Lori Mann said she agreed it would be more appropriate to use the actual number, but the number is so small, can't change rates much.
Commissioner Miller said it is not really a financial issue, it is just how strongly we feel about the opinion.
Commissioner Smith said she felt strongly about this at first.
Mike Gilmore said he didn't see a downside to petition for rehearing.  Suggested saying we are not disputing the order but don't understand the wording.
Commissioner Miller said - and they talk about the $15,000 estimate.
Commissioner Nelson said the question in his mind is - is this something that is going to come back to bitge us when the amount of $1,000,000 instead of $15,000.  There must have been something in the record to say uncontested.  Don't think you make any friends if you petition for reconsideration for $7,000.  
Commissioner Miller said winning on getting the law clarified is a big victory.
Commissioner Nelson said we generally won.
Commissioner Miller asked Mike Gilmore and Lori Mann if the opinion is harmful to the best interests of the Commission to try and get it fixed?  What would be your advice?
Lori Mann said she didn't think we have an obligation to get it fixed.  You could read it either way.  Think that what is going to come of this decision is:  when Commission orders someone to incur an expense, it has to be recovered in rates.  When you tell a company to do something, give them the money to do it.
**Will think about the matter and discuss it in the morning.
Discussed waiving costs.
Lori Mann can tell Woody Richards the decision has not been reached today, go ahead and put in for costs and not collect.
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Commissioner Miller said he was inclined to say this is a small price to get Dukane (sp).  That is his inclination right now.
Meeting adjourned.
Dated at Boise, Idaho, this 1st day of October, 1992.
Myrna J. Walters
Commission Secretary
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