19930223.docx

Minutes of Decision Meeting
February 23, 1993 - 1:30 p.m.
In attendance were:  Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Tonya Clark, Brad Purdy, Mary Friddle, Madonna Faunce, Syd Lansing, Beverly Barker, Birdelle Brown, Jim Long, Bill Eastlake, Joe Cusick, Gary Richardson, Belinda Anderson and Myrna Walters.  Also in attendance was Pat Stewart from U. S. West.
Matters listed on the February 23, 1993 Agenda were discussed as follows.
1.  Regulated Carrier Division Agenda dated 2-23-93.
Approved.
2.  Idaho Auto Transport - M-7852-1.
Commissioner Smith asked Mary Friddle if she thought this was a temporary that shouldn't be approved?
Mary Friddle responded - not necessarily - just thought the details of the filing should be on the record and Commissioners should be made aware of the situation.
After brief discussion, application was approved.
3.  Jim Long's February 9, 1993 Decision Memorandum re:  GNR-T-93-4; Mountain Phone Company - West - Application to Process Calls to Operator ("0") on a Pay Telephone.
Approved.
4.  Brad Purdy's February 11, 1993 Decision Memorandum re:  Case No. IPC-E-91-4 - Idaho Power's Application for Authority to Rate Base Its Investment in the Twin Falls Hydro Rebuild.
Commissioner Nelson asked - have we had questions about whether we were going to have a hearing or make a decision at this time?
Brad Purdy reviewed the matter.  Said question is how should Commission handle this?
Commissioner Smith asked about Swan Falls, how was that handled?
Brad Purdy responded.  Asked - given the Commission ruling on that and since hearing is not statutorily required, how did the Commissioners want to handle this?  Could ask for comments at this time.
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**Scott Woodbury, Dave Schunke and Syd Lansing were in attendance at this time.
Commissioner Nelson said this involves more generation than Swan Falls.  If it is a large project, it might be a good time to look at it.  Don't know if this is the time to deal with it, but wondered about using 5% concept on this to justify inclusion in ratebase.
Mike Gilmore said Commission is going to have to make decision on PURPA requirements also.
Commissioner Miller said he hadn't thought about it as deeply as Commissioner Nelson, about depreciation, but thought preapproval of ratebase treatment or generation is different than those in relicensing process.  Think it is an exception that it shouldn't be granted until after investigation.  Shouldn't do preapproval on modified procedure or some other less intense process.  Preapproval should be recited by as rigerious a process as we can do.  Would be in favor of a prehearing conference and hearing and the full cycle.
Commissioenr Smith asked if a prehearing conference would be necessary?
Brad Purdy said he thought it was straight forward.  May not need to establish time lines for interventions, etc.
**Notice will be issued setting out time lines.
5.  Brad Purdy's February 19, 1993 Decision Memorandum re:  Case No. IPC-E-92-23 - In the Matter of the application of Idaho Power Company for Authority to revise its Depreciation Rates for Electric Plant in Service.
Commissioner Smith asked if average life is what we use now?
Syd Lansing said yes.  It is what we normally use.
Commissioner Miller asked Syd Lansing if he was comfortable with the numbers?
Syd Lansing said yes and we will have a rate case in a year and a half where the numbers can be checked.
Commissioner Miller said - so the industrial customer writing a blank check doesn't worry you?
Syd Lansing said all these accounts are healthy.  There  has to be something tremendous come along and we would know about this.
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Commissioner Nelson asked if we are being asked to approve these now?
Commissioner Smith said she can think of a lot of depreciation only cases.
Commissioner Nelson said he thought it was reasonable.
Commissioner Smith said she would move approval.  
So approved.
7.  Lori Mann's February 18, 1993 Decision Memorandum re:  Boise Water's Motion to Extend Date to File Conservation Plan; Case No. BOI-W-90-1.
Commissioner Miller restated their plan.
Commissioner Smith asked if there was any staff objection?
Commissioner Miller asked Beverly Barker if she was working on this?
Beverly Barker said she has been working with the Company.  
Commissioner Miller said the requirement to do this has been upon them since 1990.  Just don't have feeling if this need for delay is because they haven't been devoting time to doing it or if they have been devoting time to doing it and have discovered it is a bigger problem than they anticipated.  Was hoping to review this in the rate case.  If they could do something for conservation in this rate case, given the attention this case is drawing, it would be helpful.  
Commissioner Smith asked if this item should be held until Beverly Barker can contact the company to see why they have requested the extension.
Commissioner Nelson said they would really be in a box if they say give us 6 months and we say no, you have to have it by April 1.
**Randy Lobb was in attendance at this time.
Commissioner Miller asked about the schedule for the rate case?
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Lori Mann said we want an in-house audit by mid April, hearing is tentatively for the end of May or early June.  Have until August 5 to decide case.
Commissioner Miller asked if staff had an opinion, would it be better to deal with this issue in this rate case or the second case, or does it matter?
Dave Schunke said you have public interest now and when they file in 6/8 months there will be even more public input.
Lori Mann said there is an interim plan on file.  Conservation will still be an issue in this case.  We just won't have their long-term plan.
Commissioner Miller said he guessed he would let it slide but express dissatisfaction at the delay.
Commissioner Nelson said he was just worried about the quality of the report if we said get it done in 5 weeks.
**Extension granted.
8.  Birdelle Brown's February 18, 1993 Decision Memorandum re:  GTE Advice 93-01; Effective March 1, 1993 Introduces Business/Residence Line 800 Service.
Commissioner Miller said it looked fine to him.
Commissioner Nelson commented he didn't see what particular advantage this was over dial-up, but would approve it.
So approved.
9.  U S West North Advice 93-1-N Effective 3-4-93 to Introduce 10XXX1+ and 10XXX011+ Blocking - Decision Memorandum and Addendum from Birdelle Brown.
Birdelle Brown said her only remaining concerns is should we ever get one of these untested switches, what kind of service would it be?  Recommends approval pending receipt of that information.  
Commissioner Nelson asked Birdelle for clarification.
Birdelle Brown explained.
Commissioners approved filing, pending receipt of information requested by Birdelle.
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10. Scott Woodbury's February 19, 1993 Decision Memorandum re:  WWP-G-93-1 - Interruptible Gas Service Agreement-Lignetics of Idaho.
After brief discussion, decided on modified procedure.
11. Mike Gilmore's February 19, 1993 Decision Memorandum re:  Staff Motion to Dismiss Commission Complaint against Mountain Phone Company-West, Inc.-Case No. GNR-T-92-15.
Approved dismissal of the complaint.
12A.  Terri Carlock's February 12, 1993 Decision Memorandum re:  Water Power's Application for Approval of Securities Associated with the Lease for a Combustion Turbine Generating Facility - Case No. WWP-S-93-1.
Commissioner Smith asked Terri Carlock for her recommendation.  Said she couldn't find it in the decision memorandum.  
Terri Carlock explained.  Said WWP will be the builder of the plant and the operator.
Commissioner Nelson asked if it was construction financing we are asked to approve?
Terri Carlock said yes and after three years if they are not going forward the financing is paid off.
Commissioner Miller asked what the ratemaking treatment would be for this?
Terri Carlock said it would be treated as an operating lease.  Would review the operating lease to see if the payments are reasonable.  Would be similar to their building.  When they actually sold it it went off the books.  
Commissioner Miller asked if Terri was satisfied it was least cost for financing?
Terri Carlock said it was a lot better than if they did it themselves.
Commissioner Miller asked what the advantages were for a utility to do it this way?
Terri Carlock said less costs.  They can show it is no cost to the ratepayer; keep the costs down so that the Portland General contract covers all of the costs of this.
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Commissioner Miller asked if this would make it easier or possible for a project to be in effect spun out and be a wholesale generator?
Terri Carlock said it could but you have the cost of the operating lease..the difference would be if they sold it down the line and there was a gain, trying to recover the gain for the ratepayers would be harder.  At this point it wouldn't seem the way the company has been talking, it would be an issue.  They don't anticipate selling it at this time.
Commissioner Nelson said he was wondering why considering the fact that they are having trouble meeting dividends out of current dividends, wouldn't this be an opportunity for them to build it themselves and build ratebase and possibly decrease the disparity between dividends and earnings.  Seems like that would be a possibility.
Terri Carlock said it would be a possibility but from discussions she has had with the company, think they want to be sure and show in all cases that the ratepayers are not paying for this project so there is no question of where the ultimate need is.  If it was ratebased, that question would be in the forefront.  There would be some operating expense to be picked up besides the lease payment... but think it is just the philosophy... there might not be quite as much opposition if it was not in ratebase.
Commissioner Miller asked - are they saying this is to serve Portland General?
Terri Carlock said they are saying Portland General Electric contract is covering all costs but it is also needed for capacity for their system.
Commissioner Smith said to show that that is true, Portland General is required to return the energy.
Terri Carlock said - and they make the capacity payments to them also.  A lot of it is if they were to build it themselves they would have to go the market for the money and they don't want to do that.  This way the investors can put up the equity and the rest is debt, the contract with WWP as security and contract with Portland General as backup.  It is not the regulatory risk involved because it is from a contract, not the general ratepayers and for the length of the contract it looks fairly secure.  They were hoping that they wouldn't have to get approval at this stage.
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Commissioner Nelson said he didn't see any reason to deny it.  Didn't see any reason to have any process on it.
Terri Carlock said she asked the company if this was approved as a financing mechanism to get the project approved and they assured her that this financing could be cancelled if the project does not go through and they are not liable then.
Commissioner Miller said he thought the order should be very clear on that so that WWP knows that they can't go out and buy turbines and pay costs.  Since there is a lot of public interest in this, want it to be known nothing has been rubber stanped through here.  Might want something more than boiler plant language in the order.
**Mike Gilmore will draft an order for review of the Commissioners.
12. thru 15. Rulemaking - listed on attached agenda - were discussed jointly.
Commissioner Miller said on the whole they looked in shape to go out for comment.  Then they could come back after comment for a more careful review.
Bev Barker said originally she thought these rules were going to have just numbering changes but now if we are clarifying some things, she has other matters to be clarified.
Discussed 31.21.0l502 -
Commissioner Miller said on the quesiton of whether we want to piggyback other clean-ups on reformatting, would defer to staff's judgement but to think the order that sends out the rules should make it very clear what is recodification and call specific attention to clean-ups so people don't have to dig through these rule by rule.
Commissioner Smith said it might be all right to do it, but set out the changes, new policy, etc.  There is no reason to go back, though, if we don't have to.  Do what can be done now.
Commissioner Miller asked Mike Gilmore if he was getting enough support to make sure nothing drops out of the rules as they are being reformatted?  
Mike Gilmore replied various staff people are working on various rules - Don Oliason on federal code adoptions,
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Terri Carlock on uniform system of accounts, he is doing Public Records Act, etc.
Rules are to be sent out for comment.
Meeting adjourned at 2:30 p.m.
Dated at Boise, Idaho, this 5th day of March, 1993.
Myrna J. Walters
Commission Secretary
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