19930329.docx

MINUTES OF DECISION MEETING
March 29, 1993 - 1:30 p.m.
In attendance were:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Mike Gilmore, Lori Mann, Brad Purdy, Belinda Anderson, Tonya Clark, Don Oliason, Joe Cusick, Don Howell, Bev Barker, Birdelle Brown, Gary Richardson, Mary Friddle, Keith Hessing, Jim Long, Randy Lobb, Jack Taylor, Syd Lansing and Myrna Walters.
**Also in attendance were Robert DeShazo of Eagle Water Company and Dan Stout, customer of Eagle Water Company; Walt Sorg of GTE and Peter Richardson, Attorney at Law.
Commissioner Smith opened the meeting.
Items from the March 29, 1993 Published Agenda were discussed as follows.
1.  Application of Idaho Power Company for authority to implement a Power Cost Adjustment tariff for electric service to customers in the State of Idaho; and for approval of new rates for service under the FMC Special Contract - IPC-E-92-25 - discussion of the order.
Commissioner Smith said this matter has been previously heard and the Commissioners have an order that explains the findings which is basically to accept company proposal with modifications by staff and other intervenors.  
Commissioner Miller said the Commission has explored different ways of dealing with our dual operations under public open meeting act.  In this case we are announcing and releasing the order today in our public meeting, giving the commissioners time to add additional comments but the order speaks for itself.  Said Commission is here adopting a new method by which Idaho Power Company sets rates - doing that through an annual forecast of those costs and true it up subsequently.  The procedure also measures company  incentives to be efficient in the operation of that system and to protect ratepayers against rate shock.  Most importantly the order for the first time creates system by which customers benefit in high water years.  That is a significant ratepayer benefit.  Second, there is a phase-in mechanism that adopts this system but only after the Commission has the opportunity to examine other parts of the company's rates.  On the whole said he was satisfied that this a fair new system for ratepayers which has the coincidental effect of being beneficial to the company.  Primarily the reason he was in favor of that order is it has significant ratepayer benefits.
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Commissioner Nelson said Commissioner Miller did a good job of explaining the order.  This allows the Company to stabilize and it is beneficial to the ratepayers.
Commissioner Smith said she thought the range of options in the hearing process was broad and thought the commission had balanced the interests of the customers and the company.  There are a couple of places that may need tune-up in the future.  Will be watching "rate shock".  Think it is a good plan and is happy to adopt it today.
Commissioner Miller said he thought all the parties should be complemented, particularly the staff for their good presentation in the hearing room and their helpful conduct after the hearing.
Other commissioners agreed.
14. Brad Purdy's March 25, 1993 Decision Memorandum re:  Case No. EAG-W-93-1:  In the Matter of Eagle Water's Application for Expansion of Certificated Area and Continuation of Hook-up Fee Surcharge.
Mr. DeShazo asked if Mr. Dan Stout could make a statement.
Commissioner Smith said ordinarily a decision meeting is not the time where Commission takes comments or makes a record in a case, but Mr. Stout could speak at this time.
Mr. Stout introduced himself as President of the Eagle Hills West Property Owners Association.  They now have a new board.  Primary reason for the new board is unhappiness with some of the actions taken on behalf of the property owners without their knowledge.   Said Mr. DeShazo asked to meet with the present board on April 6.  Right now he was speaking as an individual on his own behalf.  He has read the recent report and sees no reason why Eagle Water shouldn't be able to expand.  New well benefits the neighborhood while the new development will pick up the tab.  It will help fire fighting.   Said part of what is happening is people are attacking growth instead of helping solve the problems.  Changes that are being made out there are benefiting the vast majority of area residents.  Have discussed putting this information in the Association News Letter.  Customer education will help in reprogramming sprinkler systems.  Said all he saw was negative comments about the water system.  Board had concerns about existing homeowners picking up the tab for new growth.
Randy Lobb said he still has a couple of technical questions.  All the variables are the same, it is just bigger.  There is no real grounds to oppose the expansion, in his mind.
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Commissioner Smith said she thought the reason we did not certificate the area was because customers were not getting adequate service.  We promised them we wouldn't allow new people on until their problem is fixed.
Commissioner Nelson said unless we run a survey, we won't know.  
Randy Lobb said with respect to the problems and perceived problems, it was his opinion that new customers won't affect them.  If it is a capacity problem that is gone.  It would be a distribution problem in the old area.
Commissioner Nelson asked how many new homes?
Brad Purdy said 400 for the three subdivisions in the application.
Commissioner Nelson said his only concern is that is a big jump in the number of customers.  If it is nothing else you want to look at, guess we could go ahead.
Randy Lobb said it seemed to be that the new well provides three times the capacity of the existing system.  It is not a question of water supply.  Need to concentrate on the place where the problem is. Think that is the key here, check distribution lines, etc., site-specific.
Commissioner Miller said on the one hand to the extent prior problems have been capacity problems, system improvements should solve them.  At the same time, given the history of pretty significant customer unrest, unsure if we should approve it without customer comment period first (before decision is made).  Get another reading on customer situation.  Was thinking of something along the lines of modified procedure.  Hopefully the customer satisfaction index won't be high enough that we would have to go to hearing.  Modified procedure was his suggestion.
Commissioner Smith said it would be good to have some comment period.  Should it be shorter than 21 days?
Brad Purdy said not as far as staff is concerned.
Commissioner Miller said to get good distribution.
2.  Regulated Carrier Division Agenda dated March 29, 1993.
Approved.
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**Dave Schunke and Terri Carlock were in attendance at this time.
Mary Friddle did note that Orofino Chevron's check came back - will make sure the fee is paid before the order is issued.
3.  Brad Purdy's March 25, 1993 Decision Memorandum re:  Case No. M-7665-1--Gillingham Transport, Inc.:  Determination of Whether to Lift Suspension Order Imposed by Order No. 24705.
Commissioner Nelson said he thought Mr. Gillingham had gone a long way on this.  Wonder about private carriage, though.
Commissioner Smith said if we are going to investigate an alleged violation, think we have to start over again.
Commissioner Nelson said the order didn't mention a fine.
Commissioner Smith said the order looked okay.  It lifts the suspension.  Treat the violation separately.
Mary Friddle said the order spoke to two things.  Looks like he is using rental agreements to get around this.
Brad Purdy said these hauls were made during the suspension period.
Commissioner Miller said this is probably a disputable fact.  Based on what we have, it would be unfair to lead to that conclusion.  Also wonder about the fairness of now saying, by the way, if you really want your permit back, you must pay $2,000.  
Commissioner Smith said - could be through consent agreement.
Decision was:  lift the suspension now and pursue other later.
4.  Don Howell's March 26, 1993 Decision Memorandum re:  UP's Petition for Reconsideration Concerning the Aberdeen Agency, Case No. UP-RR-93-3.
Commissioner Smith said she still thought people think they are not getting adequate service.
Commissioner Miller said to say we have carefully weighed the matter and will uphold our previous decision.
Commissioner Smith asked if there was anything more that should be done to the order?
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Commissioner Nelson said he will be reconsidering his position on the petition for reconsideration.
5.  Beverly Barker's March 22, 1993 Decision Memorandum re:  WWP Request to Make Administrative Changes to Tariffs.
Approved.
**Eileen Benner was in attendance at this time.
6.  Eileen Benner's March 23, 1993 Decision Memorandum re:  GTE Request to do Voice Messaging Trial.
Commissioner Nelson asked if they were doing what U. S. West does? Asked - the description we have here -  that is limited enough that we don't need a tariff?
Approved.
7.  Belinda Anderson's March 23, 1993 Decision Memorandum re:  GTE Tariff No. 93-03 to be Effective 4-20-93 Adding 1+ Presubscription for GTE's Public and Semi-Public Pay Phones.
Approved.
8.  Jim Ling's March 23, 1993 Decision Memorandum re:  GTE Northwest Tariff Advice No. 93-04 and 94-05 Requests a Company Name Change from CONTEL of the West, Incorporated to GTE Northwest, Incorporated.
Approved.
9.  Jim Long's March 23, 1993 Decision Memorandum re:  Idaho Telephone Relay Initial Report.
Commissioner Smith asked Jim Long what he anticipated would happen after the review?
Jim Long said he would like to see another couple of months numbers before we jump in the middle of this.  Don't do anything, and review will be ready by mid-June to make a decision.  The Deaf community has the number.
Commissioner Nelson said he didn't see any relationship.  Maybe we could discuss 50% reduction now and review in June.
Commissioner Miller said that had some appeal to him.  Understand staff's concern to get good numbers but from Commissioner point of view, accumulation of large amounts in funds like this make us subject to criticism and we will be faced with the decision of what to do with the funds.  Was torn between those two.  Don't know what the right balance is.
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Commissioner Nelson said having a large balance made him nervous.
Mike Gilmore said commissioners could do an interim reduction to expire July 1.
Commissioner Smith said her only concern is cost for the companies.  Spoke to Gem State specifically.  Said that was the only problem she had.
Commissioner Nelson asked if we would have a recommendation within 3 months?
Jim Long said yes.
Commissioner Miller said he thought about frequent changes but since the recommendation came from the industry, presume they speak for everyone involved.
Commissioner Nelson said he would be in favor of reducing it.
Commissioner Smith said to put in the order that if there are extraordinary costs now, they could be excused from changing it now.
**Make it interim.
10. Joe Cusick's March 19, 1993 Decision Memorandum re:  Consolidated Tariff Filing for Albion, Cambridge, Midvale, Inland, Rockland and Rural Telephone Companies.
Approved.
11. Joe Cusick's March 25, 1993 Decision Memorandum re:  MCI Telecommunications, Inc. - Deaveraging of Message Telecommunications Services (MTS) Rates.
After discussion, was decided to open an investigation into the matter - to start it out on neutral ground.
Approved.
12. Lori Mann's March 24, 1993 Decision Memorandum re:  Companies' Responses to Inland's Leon Exchange Customers Becoming GTE Customers; Case No. INL-T-93-1.
After discussion, was decided we don't actually have an EAS petition.  They are to be told there is a hearing on EAS.
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13. Lori Mann's March 24, 1993 Decision Memorandum re:  Idaho Power's Modification to its Good Cents Program; Case No. IPC-E-89-16.
Commissioner Smith asked if there was any reaction from the company about staff recommendation?
Bill Eastlake said he heard from Jim Baggs.  Thought No. 2 might be a discrimination problem.  Third item was just an afterthought but doubt it would cause any difficulty.
Commissioner Miller said he thought we should put it in.
Commissioner Smith asked if the commissioners thought it was discriminatory?
**Need to find a rational basis.
Commissioner Miller said his feeling is you would have to have a record but at this point could ask them to explore it.
**Otherwise approve the Good Cents Modification.  Note staff recommendations and ask them to check into #2.  Provide a plan and encourage their efforts.
15. Mike Gilmore's March 26, 1993 Decision Memorandum re:  Proposed Reply to Telephone Restoration Network Inc.
Mike Gilmore said he thought Simplot decision would give us freedom so it would be a policy decision on whether we want to take jurisdiction.  This guy is not providing switched access.  We have considered payphones under our jurisdiction because of 61-619.  They are holding themselves out to the public differently.  
**Ron Lightfoot was in attendance at this time.  He said they advertise in the tabloids.  Basically they present themselves as a third party billing agent.  They contact the LEC and hook-up service in their name.  In some states they offer blanket deposits with LECS for x numbers of risks.  Basically they look for disconnects that don't have the money to get back on the network and try to offer a means to get them service.
Commissioner Smith asked if he pays the delinquent bill or just gets it hooked up?
Ron Lightfoot said we don't want to have the debt ignored but we will abide by what the reasons are.  At a minimum we would require a deposit based on the applicant's history.  That would be based on the customer.  It is US West's intention by June that there will be available information that would make this service unnecessary.  
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Commissioner Miller said they are selling their credit history and the telephone customer has his or her own phone in her home connected as it would otherwise be connected.  Guess we could say they are providing financial service, they are not a phone company.
**Will go with Mike Gilmore's letter.
Commissioner Smith said she would cc it to the AG's Office and the Department of Finance.
16. Scott Woodbury's March 26, 1993 Decision Memorandum re:  Case No. WWP-G-93-1 Lignetics - Interruptible Sales and Transportation Agreement.
Approved.
17. Terri Carlock and Denise Barkdull's March 23, 1993 Decision Memorandum in the Matter of the Application of Pacificorp for Authority to issue and sell not more than 9,067,678 additional shares of its common stock under its dividend reinvestment and stock purchase plan, as amended; Case No. PAC-S-93-1.
Approved.
18. Terri Carlock and Denise Barkdull's March 26, 1993 Decision Memorandum in the Matter of the Application of Washington Water Power Company for an order authorizing the issuance and sale of up to $250,000,000 Principal Amount of First Mortgage Bonds; Case No. WWP-S-93-2.
Approved.
Meeting adjourned.
Dated at Boise, Idaho, this 27th day of April, 1993.
Myrna J. Walters
Commission Secretary
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