19921130.docx

MINUTES OF DECISION MEETING
November 30, 1992 - 1:30 p.m.
In attendance were:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Tom Faull, Belinda Anderson, Keith Hessing, Randy Lobb, Gary Richardson, Tonya Clark, Jim Long, Scott Woodbury, Dave Schunke, Eileen Benner, Lori Mann, Joe Cusick and Myrna Walters.
Items from the November 30, 1992 Agenda were discussed as follows.
1.  Don Howell's November 12, 1992 Decision Memorandum re:  Union Pacific's Request to Relocate the Weiser-Payette Freight Agency, Case No. UP-RR-92-2.  (Held from 11-23-92 Decision Meeting).
Was again deferred.
4.  Tom Faull's November 27, 1992 Decision Memorandum re:  WWP-Potlatch Gas Transportation Contract, WWP Letter Dated November 25, 1992.
Commissioner Miller said he couldn't figure out if this is a significant rate decrease or was it changing blocks?
Tom Faull said it was hard to tell whether anything changed.
Commissioner Miller asked Tom Faull if he was satisfied it was okay?
Tom Faull said he was.
No order will have to be issued.  Showing it in the Minutes was sufficient.
Was discussion on FERC Order 636 pertaining to gas companies, transportation rates being passed thru to ratepayers, etc.  
Dave Schunke will be keep in touch with FERC on this matter.
**Also in attendance at this time were:  Jim Wozniak from U. S. West and Walt Sorg from GTE.
5.  IPC-E-92-22/UPL-E-92-5 - Joint Petition for Declaratory Order - Response to Petition by Firth Cogeneration Partners, Inc.
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Scott Woodbury explained the filing.  Said both utilities have been contacted and they will provide letters saying they do not object to the dismissal.  
Commissioners said okay to dismissal after letters are received from IPC and UPL.
6.  Mike Gilmore's November 27, 1992 Decision Memorandum re:  Idaho Power's Application in Case No. IPC-E-92-25 - The Power Cost Adjustment Case.
Questions to be considered:  Should Idaho POwer's tariff filing be suspended and should a prehearing conference be scheduled?
Was decided to have prehearing conference in January and to suspend the tariffs.
Commissioner Miller commented - need to keep in mind it will take effect in May.  Schedule should be built around that.
**Birdelle Brown, Beverly Barker and Dave Schunke were in attendance at this time.
*Discussed the Albion Telephone/Kent Searle matter briefly.  Albion Telephone has asked for rehearing.  Matter will be on the agenda soon.  Commissioners indicated Mr. Searle should be notified that he may want to hold off spending money on his system at this time.
Mike Gilmore will also contact Albion about what the likelihood of stringing line this time of year was, etc.
2.  Lori Mann's November 25, 1992 Decision Memorandum re:  Staff's Motion for an Investigation into the Earnings of Albion Telephone Company;  Case No. ALB-T-92-2.
Commissioner Miller said that he assumed that since the staff analysis is based on their understanding of '91 expenditures, that the company can come in and attempt to show other expenses that may not be in the annual report but should be considered for ratemaking.  Is trying to think of what you do in an over-earnings case.  As he understood staff case, they used annual report as basis for calculation of over-earnings, and an audit of the revenues and expenses approved in the last rate case.  Based on that, staff concludes that the earnings exceed those authorized in the last rate case.  When this case is started, what will the evidence be?
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Stephanie Miller said we would assume Albion would come in with updated information and staff would consider expenditures.  We think there are some expenditures that are incorrectly allocated but we haven't made any adjustments for that.  
Commissioner Miller asked - if they can come up with additional expenses, that eats up the excess revenue under staff analysis, would that be about right?
Stephanie Miller said except that we heard from NECA they are getting another $50,000 payment.
**Also haven't argued allocations numbers.
Commissioner Miller said - so this turns into a rate case.  You actually go through and litigate each item if you want to?
Mike Gilmore suggested the notice should say you are going to be forward looking.  Rate of return will be an issue.  
**It is actually an involuntary rate case.
Mike Gilmore said if you convene a prehearing, think they would prefer to put on their own case initially.
Commissioner Smith said she didn't think we had enough to issue an order to show cause.  Think there should be a prima facie case first.  That seemed to be different from just opening a case to investigate earnings.  Said to her it seemed to be two different procedures at the start.
Commissioner Miller said he thought before you launch one of these you should have strong feeling of probability that staff is correct.  Wonder about doing a lot of work for little money - if it starts out to lower rates and never does.
Commissioner Nelson wondered if you could take the statement to start a case.
Mike Gilmore said these are the company's own numbers.
Lori Mann said the company made no response.  
Commissioner Miller said it is hard to take this and look at the last rate case and make sense of this.  There is nothing like this in the rate case order to compare this to.  
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Other question is, in the staff motion there is a statement of the increased revenue $130,000 are in excess of rate case.  If you read the rate case order, NECA funds are not mentioned.  Where did this come from?
Stephanie Miller said - from their exhibits.
Eileen Benner explained the number.
**Randy Lobb was in attendance at this time.
Commissioner Miller said he was just not sure of how to proceed.  Asked Stephanie Miller how she envisioned this unfolding?
Stephanie Miller said staff expected to hear from Albion.  They have not responded.
Commissioner Smith suggested opening a case and scheduling a prehearing.
Mike Gilmore suggested putting in probable cause of why the matter was initiated.
Commissioner Smith said - need to get Albion down here and see what is on their mind.
Commissioner Miller asked - how do you decide who becomes target of these motions?
Stephanie Miller explained - if it looks like we can't make a case or if rates will go up, we don't drag them in here.  Think there is cause for Albion.  Said staff looked at them all and Albion was the only one that staff has seen in a long time that needed to be investigated.  Are looking at GTE and Contel.  Terri Carlock has her auditors do desk audits of the annual reports as they come in.
Commissioner Miller said he thought there should be some uniformity of how these pop up.
Mike Gilmore said it should be open ended at this time.  Further proceedings will be outlined at prehearing.
3.  Lori Mann's November 25, 1992 Decision Memorandum re:  Elk City Petition for EAS to Grange ville; Case No. GNR-T-92-5.
Lori Mann mentioned that out of 11 public witnesses, ten were from Elk City.
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Commissioner Nelson said he thought there were a group of people in Elk City where a calling plan would be valuable.  Another group makes no calls.  Think they would make calls if there was a rate break.  Also don't know penetration rate in Elk City.  The general discussion was that they come to Grangeville just as seldom as possible.  When they are there they make their calls and go back.  There are varying numbers of students at Grangeville or Clearwater.  They board for the week and then go home.  Generally they make a phone call a week.  Got the impression if you are going to live in Elk City you make some sacrifices.
Lori Mann asked what the student numbers were?
Commissioner Nelson said 10 to 14.
Discussed the schooling.
Commissioner Nelson said his impression of the situation is that a very large EAS charge would be a detriment to the people living in Elk City and would benefit a significant minority.  Would be pretty tough to say we should go further in this case.  It is 60 miles from Grangeville to Elk City.  That is a long way for EAS.  Think case can be made that there are other areas in Idaho that make significantly more calls.  They live there for a reason.  The volume of the people who testified was not that great.
Commissioner Smith said she thought we should figure out what kind of toll plans PNB has.
Commissioner Miller said he agreed with Commissioner Nelson that there are very few who make many calls.  There are always those who should benefit from EAS, but this is very costly.  Call volumes are low.  If you grant it here, don't know how you would not grant it statewide.  Think the general goal should be to eliminate remoteness when you can but there are consequences of being remote.  Sixty miles from Grangeville is remote.  Don't think there is justification to proceed to technical hearing.  Would be helpful to see if there are toll discount plans available.  Wonder about Call Thrift - whatever we can dig up on that.
Commissioner Smith said she thought Commission should outline the process, should at least have volume discounts.
Jim Wozniak said he will check on the volume discount plans available.
Jim Long said Call Thrift was all he could see.
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Commissioner Smith said U. S. West used to have volume discounts.
Jim Wozniak said they still do.
He will check into it.
Meeting adjourned at 2:15 p.m.
Dated at Boise, Idaho, this 10th day of December, 1992.
Myrna J. Walters
Commission Secretary
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