19930630.docx

MINUTES OF DECISION MEETING
June 30, 1993 - 1:30 p.m.
In attendance were:
Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Scott Woodbury, Don Howell, Birdelle Brown, Bev Barker, Triva Pline, Stephanie Miller, Gary Richardson, Mary Friddle, Syd Lansing, Belinda Anderson, Terri Carlock, Jim Long, Madonna Faunce, Allan Killian, Eileen Benner, Tonya Clark, Terri Carlock and Myrna Walters.
Also in attendance were:  Mike McGarth and Skip Worthan of Intermountain Gas Company, Walt Sorg of GTE, Ron Lightfoot of U S West, Bob Dunbar, TRS Administrator and Tim Stivers, Motor Carrier Consultant.
Commissioner Smith called the meeting to order.
Items from the June 30, 1993 Agenda were discussed as follows.
1.  Regulated Carrier Division Agenda dated June 30, 1993.
Commissioner Nelson said he would move approval of the agenda with the exception of No. 1 - Application of John Lane Trucking - M-7971-1.  Said he read the letter of support and there is no immediate need for the authority.  
Agenda was approved unanimously with the exception of M-7971-1.
2.  Mary Friddle's June 28, 1993 Decision Memorandum re:  Jeff Everhart dba J-N-K Trucking.
Mary Friddle pointed out the letter sent in by Tim Stivers.  Said Mr. Winney does advertise.  Wanted that known.
Commissioner Smith said Mary Friddle has duly reported that they do advertise.
Commissioner Miller said he was in favor of granting authority.
Commissioner Nelson said the reasons for temporary doesn't carry over to permanent.
Granted the permanent.
Commissioner Smith asked - do we want to address the letter from the protestant?
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Commissioner Miller said he thought Mr. Stiver's letter was a good review of the past and current.  Thought the protestant, while having understood the point, really does  kind of misperceive the thrust of our approach to entry regulation.
Commissioner Smith said some discussion in the order is warranted to address both the protestant's comments and the Stivers' letter.  Need a crack lawyer on this.
Okayed.
3.  Mary Friddle's June 28, 1993 Decision Memorandum re:  Expeditors by Linedale, Inc. dba Expeditors.
Commissioner Smith said while she didn't think its cause to deny the authority request, she did believe that Susan Lehman's very thoughtful and complete letter deserves a thoughtful and complete response.  It was addressed to Bob Horton but she did see a copy.  Would like to respond to that.
Commissioner Nelson said he thought he had said this before.  For those people who are getting temporary authority every summer, starting next year, he will not vote to grant that unless they have a satisfactory safety rating.  
Commissioner Miller asked what our current approach was?
Commissioner Nelson said they are allowed temporary and time certain to get satisfactory.
Mary Friddle explained the new rule.  They cannot have an unsatisfactory rating.
Commissioner Nelson said they apply for temporary and never bother to get rating.
New rule will address choices but not coming in year after year without getting rated.
Approved.
4.  Birdelle Brown's June 18, 1993 Decision Memorandum re:  GTE Advice 93-07 Increase Discount Rate on NETCOMII Services.
Commissioner Miller said he asked Birdelle Brown why this came to the Commissioners once..and now again.. what was the drift of our discussion before?
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Birdelle Brown said there were questions from the Commission regarding whether or not this was anticompetitive.  GTE suggested that their reason for offering this was to keep the state's business.  There was some question about what the state's intent was regarding their traffic on NETCOMM.  Didn't dig up anything - they answered questions, as far as the rates go, we set rates for regulated companies based on total revenue requirement and the individual costs and the next rate case.  Suggest that if we don't grant it it isn't going to drop the ratepayers' rates any.  As far as state's intent goes, the state said they are always looking for the best rates they can get.  They didn't have any immediate plans to leave the system.
Commissioner Miller said as it looks at the moment and with the understanding that it doesn't necessarily carry any commitments for ratemaking treatment in the next rate case, was not as concerned about it as he was.
Approved by all three commissioners.
5.  Bev Barker's June 25, 1993 Decision Memorandum re:  Idaho Power Tariff Advice No. 93-3 - General Rules 15 & 20.
Approved.
6.  Jim Long's June 25, 1993 Decision Memorandum re:  GNR-T-93-14; Choice Communications' Application for Exemption for O- Calls.
Commissioner Smith questioned on Pages 2 and 3, .002 mills, was that 2-1 thousandths of a mill?  Asked if the companies can bill that?
Jim Long said yes.  2-10 thousandths.
Commissioner Nelson asked if it was worth doing?
Jim Long said - preference is to do something rather than nothing.
Commissioner Miller said even though we are overfunded, still have those who are paying, it is not fair that others don't.  (1)  Seems unfair to those who have to pay to know that there are others who do not meet their obligation.  (2)  They shouldn't have to pay more than their true share.  Asked how to approach the problem?  What was the recommendation?
Jim Long said he thought it probably  should be handled like USF.  If they don't pay, enter into a case.
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Bob Dunbar will send out certified letters in June.  Think some of these people will apply for an exemption.  If we go to quarterly payment, it will be more palatable to them.
Commissioner Smith asked if the statute allows quarterly?
Jim Long said the statute mirrors USF.
Commissioner Smith asked Don Howell to check to see if quarterly was okay.
Commissioner Miller asked - after certified, will we do Show Cause?  Think we should embark on that.  How long will it take to contact them - 60 days maximum?
*By September 1 will be notified what the status is - after Labor Day.
Bob Dunbar reported on FCC certification.
Commissioner Smith said - concur with funding level changes - frequencies of payment - quarterly.  What about rural exchange companies - reduce the funding level?  Order Gem State to revise their tariff.
Commissioner Miller asked how Hamilton was doing?
Bob Dunbar replied - the only problem is the incorrect directory number.  The community would like to see the calls speeded up.  They are handling it very professionally.  Looks like volume will double in a year.  Only glitch in the future is "coin" access.  It is not available.
Commissioner Miller asked how the community liaison person is working?
Bob Dunbar responded.  She has been getting around the community.  She is well-received.  She has been quite effective.
7.  Belinda Anderson's June 24, 1993 Decision Memorandum re:  GNR-T-93-14; Choice Communications' Application for Exemption for O- Calls.
Approved.
9.  Syd Lansing's June 28, 1993 Decision Memorandum re:  Troy Telephone(Owned by TDS TELECOM) Depreciation Change Regarding an Obsolete Switch at Troy, Idaho.
Commissioner Nelson said he thought we should do it in an order.
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Commissioner Smith said she thought just the opposite.  Thought a letter okaying it is the way to go.
Syd Lansing spoke to the Northern Telecom switches.
**Was decided to do a letter response rather than order.
10. Scott Woodbury's June 28, 1993 Decision Memorandum re:  WWP Revised Tariff (Franchise Fees) Electric Schedule 58 Tax Adjustment Schedule-Idaho; Natural Gas Schedule 158 Tax Adjustment Schedule-Idaho.
Commissioner Miller commented - the increase is just to customers within Coeur d'Alene.
Scott Woodbury said they are requesting a waiver of the 30-day implementation.  They filed June 23 and are requesting a July 1 effective date.  If it is not effective July 1, the City of Coeur d'Alene has to run it back through.  Would suggest it be approved by Minute Entry.  Said the tariff itself does not require separate line on the billing.
Commissioner Smith said franchise fee is not part of the rates we set and it should be a separate line item on the bill.
Scott Woodbury said he thought we had everybody doing it.
Bev Barker said the consumer rules require setting out recurring charges as a separate item.
**Do it by order.
11. Scott Woodbury's June 28, 1993 Decision Memorandum re:  Case No. INT-G-93-1.
Commissioner Smith said she searched for staff recommendation in the Memo.
Scott Woodbury said he thought there was a recommendation in the comments.
Staff is asking for approval of the application with the exception of the $724,087 shift from IGC Resources to IGC transportation customers.
Madonna Faunce said that is the variable cost to transport of Northwest Pipeline.  There is a demand charge each month according to what is in the contract.  Then the actual therms carry a commodity charge of .0596.
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Commissioner Nelson asked about the objection?
Madonna Faunce said in everything she has looked at, the person who actually owns the gas... it is a pass-thru cost.  It is her opinion that Resources is the actual owner of the gas.  In IGC's WACOG, the product cost of gas includes this portion.  When you look at their break-out, you don't find this number for the core customers.  Her objection is that it is part of the cost of gas and who owns the gas is responsible.
Commissioner Miller said the original proposal of the company was to take it out of Resources and make it part of the transportation cost to customers.  So the customers pay it either way.  Is this a matter of philosophy .. why does it matter who charges it?
Madonna Faunce said if a customer calls in and looks at the cost of gas that IGC charges and Resources charges, you are not looking at apples and apples.  You have a perceptive difference there.  Also it comes down to who should IGC look to to collect this cost?  Who is transporting the gas?  Explained - who bought the gas to begin with and who is transporting the gas.  It is kind of a philosophy difference between her and the company.  
Commissioner Smith asked if they (IGC) differ with staff?
Skip Worthan replied - it is a billing issue.  Think their concern is about future exposure to the extent that another company besides Resources would actually be acquiring gas for customers and transporting it.  At that point would have to ask that that cost be regulated.  It is really title gas of the company.  They own the gas.  Isn't Resources gas.  
Madonna Faunce said she didn't know if some of the smaller customers know that that is their gas.
Commissioner Miller said for now we can approve it on the basis of the consent of everyone.
Commissioner Smith said she thought we got letters from the customers.
Scott Woodbury said that was an oversight on his part.
Commissioner Smith said she couldn't see that a hearing would shed any more light on this.  Asked if there was a need for anymore process?
Commissioner Miller said he did think that we should think about the question of the continued appropriateness of trackers in this new mixing environment.  The J P Morgan
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letter though primarily a marketing letter, does raise the question of whether trackers are the way of the future.. don't know what the right answer is, but don't think we should just ignore it and maybe in the context of the gas IRP, will get a better feel for what the future of trackers is.  Are they even necessary in the fully-competitive market?  Do they create the right incentive?  Seems to be questions worth thinking about.  Think it is something that should be thought about sometime, but was not in favor of not approving this application.
No hearing - make staff adjustment - true up changes in the next tracker.
Commissioner Smith asked about estimated therms versus actual.  Are we going to do the same thing we always do?
Commissioner Nelson said it all comes out in the end.
Scott Woodbury is to propose some language.
12. Scott Woodbury's Decision Memorandum re:  WWP-E-92-1/WWP-G-93-1 - FAS 109.
Commissioner Miller asked if any of the staff items of concerns are a problem to the company?
Syd Lansing said the company has agreed on all of them.
Commissioner Miller said it seemed like all of them were well-settled items.
Commissioner Nelson said he would recommend approval of Item 12 with the four provisions.
**It had already gone out modified.
Scott Woodbury asked about orders that have July 1 effective dates?  WWP tracker, IGC gas tracker, Variable rate?
**Can use 7-1-93 effective date.
13. Don Howell's June 21, 1993 Decision Memorandum re:  Inmate Petition to Modify or Amend Telephone Customer Rule 11.9, Case No. GNR-T-93-12.
**Will be held til July 6, 1993 Decision Meeting.
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14. Don Howell's June 22, 1993 Decision Memorandum re:  Formal Complaint Concerning International Telephone Calls from Inmate Payphones.  (Don Howell asked that this be put back on the agenda from the 6-25-93 Decision Meeting).
Don Howell said he had some questions about the summons.  AT&T needs further information.  He has prepared a letter for Mr. Lanksford.  Response to that letter would influence formal versus informal handling of the matter.
Commissioner Smith asked Commissioner Miller what he would like to do?
Commissioner Miller said he didn't see any reason to try it before it goes formal.  Think we should just serve the complaint on AT&T.  
Don Howell said our rules provide for formal and informal complaints.  Our rules say how it is styled is still up to the Commission's discretion.  One of the reasons you can handle it informally is they have not filed it on the company.
Commissioner Miller said we can also just ask the Commission Secretary to prepare a summons.
**Was decided to issue the summons.
15. Terri Carlock's Decision Memorandum re:  PAC-S-93-2 - Application for authority to issue and sell debt and No Par Serial Preferred Stock in an amount not to exceed $150,000,000.
Terri Carlock recommended approval.
Application is granted.
16.  Letter from Timothy R. Stivers re:  Adoption of Final Rules - Case No. 31-6101-9301.
Commissioner Smith reviewed the matter.
Had a question on #6, thought passenger carriers under 16 were not required to drug test.
Mary Friddle said she also thought that was the decision and it shouldn't have been drafted this way.
Commissioner Smith said the order should conform to what the Commissioners decided.
**Need emergency rule to fix the proposed rule to set out what was decided originally.
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Tim Stivers commented it already requires CDL.
**Mary Friddle will check on that.
Commissioner Miller asked if there were any other problems?
Mary Friddle said she thought there should be more details on procedures for general commodities.  We are not going to make them amend their authority but think we should expand.
Tin Stivers said his clients have the understanding that they will have two permits - an issue he had already gone over.
Commissioner Miller commented it seemed there wasn't a real consensus on this.
Mary Friddle responded - said they will be able to say whatever they are hauling now and they will be able to haul that.  We are not taking anything away from them.  We are just going to find out more specifics.
Tim Stivers said he thought it was going to be interesting to send out a letter when they don't know what the descriptions are.  Gave an example of his client's predicament.  Think it is a difficult problem for the existing carriers to come in and amend their authorities.
Mary Friddle said we are going to put the informal interpretations in the letters.  That could solve some of those concerns.
**Thought No. 1 should be elaborated upon.
Mary Friddle is to give her suggestions to Mike Gilmore.
Tim Stivers said for seasonal customers for the skiing season, will make suggestion to staff that something can be derived from them to get before the season.
Mary Friddle and Allan Killian are to work with Tim Stivers on this.
Commissioner Miller asked about existing carriers?
Mary Friddle responded.  The letter will be sent to the carriers.  They are grandfathered but they are to tell the Commission more specifically what they are going to haul.  
Tonya Clark said they are not going to be challenged but if we leave certificates as they are (before July 1) we won't be able to get the information we want to develop.
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They are just being asked to list what they are hauling.  
Mary Friddle said we can explain this in the letter.  Say if you ever intend to haul these, check the boxes.
Commissioner Miller said it seemed to him if you have a carrier now with a certificate that says general commodities and you ask him to specify some specific things that he ends up with a certificate that is less broad and confers less rights than he has now.  
Commissioner Nelson asked - what are you going to do with the 30% that don't respond?
Commissioner Smith asked is the problem is that we have redefined general commodities?
Tonya Clark said before you could enforce what he was hauling, you would have to know when he got the certificate.
Commissioner Smith said it seemed that grandfathering for general commodities before July 1, you did every commodity.  Then they wouldn't lose anything.  Before they can haul everything and after they can't.
Tonya Clark explained how this all got started.  Years ago the annual report asked for specifics.
Commissioner Smith said she understood that staff would like more information on what carriers are hauling.  May not be able to do that and preserve these carriers existing authority.
Commissioner Miller said when staff is ready to proceed, we had better look at the letters to see if they are fair and reasonable.
Tim Stivers explained the industry problem.  Think that is the carrier obligation, not the PUC's.
**Get drug testing fixed.
7.  Commissioner Smith had a question on Page 4 - be consistent about the language.  
Page 5 - 212.  Okayed.
Page 6 - .02 - further define shortly.
Don Howell questioned 103 - was trying to eliminate ambiguities.
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**Will be in Rule 11.
Meeting was adjourned.
Dated at Boise, Idaho, this 28th day of September, 1993.
Myrna J. Walters
Commission Secretary
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