19930430.docx

Minutes of Decision Meeting
April 30, 1993 - 11:00 a.m.
In attendance were:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Scott Woodbury, Tonya Clark, Brad Purdy, Keith Hessing and Myrna Walters.  Also in attendance was Greg Said of Idaho Power Company.
Items from the published April 30, 1993 Agenda were discussed and acted on as follows.
1.  Keith Hessing's April 28, 1993 Decision Memorandum re:  Implementation of Idaho Power's PCA Forecasted Rates - IPC-E-93-8.
Commissioner Smith said it looked like a compliance filing.
Keith Hessing said it is only the forecast at this time.
Commissioner Nelson said he didn't think there was even a need for modified procedure.
Commissioner Miller said he wondered if any of the parties got notice?  Did we give any indication that it would be any different?
Commissioner Nelson said it seemed the time period allowed doesn't really allow for anything unless there is a problem that became apparent.
Brad Purdy said the order never indicated.  Thought it was Idaho Power's need to have an implementation.  Viewed it as period if someone saw a problem they could speak up.
Commissioner Miller said he just wanted to be sure that there weren't any expectations.
Brad Purdy suggested that the Commission could issue an order and say if any party wishes to comment they can do so.
Commissioner Nelson said if we approve it by Minute Entry, could send all parties a copy of the Minute Entry.
Commissioner Miller suggested an order that says this is the way we intend to do this.
Commissioner Smith said - and specifically find that tariffs are in compliance with the order.
Keith Hessing said he didn't know what the final order said about CSPP.  that was the company's request in the case.
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Commissioner Nelson said he didn't see what response there could be on the part of the other parties.
Brad Purdy said he thought the order accepted that CSPP would no longer be deferred.
was discussed on the fact that the surcharge needed to be extended a few days in this matter to allow for comments.  
**Order will have to be issued, rather than Minute Entry.
2.  Scott Woodbury's April 28, 1993 Decision Memorandum re:  Case No. WWP-E-93-3 - PCA - Request for Extension.
Commissioner Smith said staff raised some good concerns on the filing.
Commissioner Nelson said he thought so too, but wonder about 2 years.  Thought one year would be up so soon.
Scott Woodbury said it has been so long since a general audit of the Company.
Commissioner Miller asked Keith Hessing if the audit would go into stuff he would be evaluating for PCA?
Keith Hessing said some - but not all.  Would have to do something special if we wanted to look at specifics as part of the audit.
Commissioner Nelson said he thought that would be appropriate in this case.
Commissioner Miller asked Keith Hessing if he had on his work horizon a review of this?
Keith Hessing said there are some things we should do and he has been looking at reviewing some of those.  One of the important things is to look at the base that comes out of the general audit and see where we think we are.  We are building up lots of contracts on WWP's part that have changed.  It is becoming more cumbersome to go through their reports.  It would be nice to start over with a clean slate.
Commissioner Miller said he thought one year would be good if staff does intend to do work on it and if one year would be enough time.
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Keith Hessing said the order also calls for an annual PCA audit.  Don't know if that is scheduled.  Probably that could be scheduled with this order.  Usually when that happens one or two of the accountants go and he goes, too.
Commissioner Miller said a year could fly by pretty fast if there isn't a dedicated, committed effort to really look at this.  Don't see any purpose extending it a year and don't accomplish something but if staff really intends to make this one of their projects during the next 12 months, 12 months would be fine.
Keith Hessing said he would be willing to do that.  Don't know what Stephanie, Dave and Randy have in mind, though.
Commissioner Smith said this was the company that we did FAS 106 on for three years, starting January 1.
Commissioner Miller said could put it for a year now and have real work on it and in 12 months can decide whether we should let it go into the next rate case or if we ought to do something then.
Commissioner Smith said she didn't think in 12 months you could do staff work or get rate case filed.
Keith Hessing said at the time the base is updated, staff has questions with regard to how to spread the revenue and whether a modeled answer is best, they have advantages and disadvantages.  Would like to analyze all of that again but probably not until a general rate case.
Commissioner Smith asked how it would work if Commission extended for 2 years but if staff finds something that needs to be corrected sooner, they could let us know?
Commissioner Miller said he could go along with that but his preference would be one year.
Commissioner Smith said actually she was thinking of saying it was renewable annually for another year.
Commissioner Miller said in 12 months after a thorough financial audit and thorough PC A audit and that comes back to the Commissioners, we can be in a position to make a good decision if we want to do annual reviews until rate case or let it go entirely until a rate case is filed or if we want to take up some special action then.
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Commissioner Nelson said he was pretty much of the opinion that we may well want a rate case in the next 2 years because the information is so dated to base rates on.
Keith Hessing said we are talking about the old base that is ancient.
Commissioner Nelson said they are really getting ripe for a case.
Commissioner Smith asked Scott Woodbury what he thought?
Scott Woodbury said Commission hasn't noticed it up, if you want to put proposed times in it.  Commission had concern if it weren't for the rate moderation commitment they wouldn't be inclined to accept it.  Rate moderation is going off.  Rate moderation was a cap.
Commissioner Smith asked - did they operate inside the PCA?  
Scott Woodbury explained the rate moderation commitment.  As a condition of settlement they asked for PCA.  Then all rate caps went into effect.
Keith Hessing said there most recent indication is 3 years or more before they are ready for a rate case.
Scott Woodbury said with regulation going from general rate case to surcharges and ready-fix type, that incentive for the company is not as great.  Data that we rely on conditionally becomes more suspect.
Commissioner Miller said that would be rationale for one year.  PCA was linked to rate moderation.  So we need to decide if PCA has independent value to allow it to stand alone without rate moderation.
Keith Hessing said staff has had some concern if we tie the intention of the PCA to general rate case, they may opt to forget the PCA.  Not sure that accomplishes what the Commission would want.
Scott Woodbury said company has indicated if Commission turns down the request, they may just rely on surcharges and rebates.
Commissioner Smith said it seemed to her that since they haven't taken advantage of these increases along the way, ... don't think this should necessarily be there.
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Commissioner Miller said he thought Commission needed financial and PCA audit to make that decision.
Commissioner Nelson said if we go with 1 year, we would need to hear form the staff by Christmas.
**Okayed one year.
Scott Woodbury asked - just want an order extending it?
Commissioner Smith said  - grant the extension until July 1, 1994 and say after staff report we may extend further.  We need some assurance of insurability of the best numbers given their age.
Commissioner Miller asked about Potlatch rates, are they separate from PCA?
Keith Hessing said yes.  They are concerned about this.  Have had residential groups from time to time.
Commissioner Miller said just approve it for the year predicated on the study.
Agreed.
Meeting adjourned at ll:30 a.m.
Dated at Boise, Idaho, this 20th day of May, 1993.
Myrna J. Walters
Commission Secretary
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