19930802.docx

MINUTES OF DECISION MEETING
August 2, 1993 - 1:30 p.m.
In attendance were Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Joe Cusick, Belinda Anderson, Syd Lansing, Brad Purdy, Stephanie Miller, Birdelle Brown, Randy Lobb, Don Howell, Lori Mann, Bill Eastlake, Mary Friddle, Jim Long, Madonna Faunce, Bev Barker, Tonya Clark and Myrna Walters.
Also in attendance were Ron Lightfoot from U. S. West; Tim Stivers, Consultant, Walt Sorg from GTE and Patty Nichols from Idaho Power Company.
Items from the August 2, 1993 Decision Meeting Agenda were discussed and acted upon as follows.
Commission President, Marsha Smith, called the meeting to order.
1.  Regulated Carrier Division Agenda dated August 2, 1993.
Item 1 on the Agenda was Caldwell Transportation Request for suspension of its commuter bus authority.
Commissioner Smith said her thought was we can't force a business to stay in business if its not making money.  Asked if we have sent an accountant out to verify this or do we have verification?
Mary Friddle said - have looked at the last few years' annual reports.
Commissioner Smith asked - are we sure they are operating at a loss?
Commissioner Miller said he thought just looking at them if you did a traditional utility rate analysis you would end up with higher rates then they proposed.  There is no rate base, no overhead, no rate of return.  Assumed a traditional utility type rate analysis would probably produce higher rates.  At this level that wasn't as big a concern for him.  To him the information provided of financial loss was enough.
Commissioner Smith said - and verifying that with Mary, looked like the conclusions are correct, in her mind the only thing we can do is grant their petition.  They are not asking to raise rates.
Commissioner Nelson said he thought we might grant it interimly and try to hold a hearing in about 3 weeks to publicize it, give people a chance to vent their frustrations.
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Commissioner Smith said she didn't know how you would do that.
Mary Friddle said one thing we normally do is do this for 36 months (suspension).  Could do this for a year's time frame and see if someone can help her out of the situation (manager of Caldwell Bus).
Tonya Clark said the only advantage to Ralph's suggestion is there could be some finding we haven't been able to get to the bottom of.  We get mixed answers.
Commissioner Nelson said - question of why ridership went down.
Mary Friddle said part of it is the Simplot business moving.  Lot of people moved over to Boise.  That is why the ridership declined.  Also vanpooling had an effect.
Commissioner Nelson said if there are only 18 people riding it you don't need a 42 passenger bus.
Commissioner Smith said she guessed the one year idea has an appeal to her if something might happen in that time that might result in bus service coming back.  This is a good idea that went wrong.  You erode the for-profit business by providing federal funding.  If there is actually something that could be happening during the year, it is a good idea.  If there wasn't, it isn't a good idea.
Mary Friddle introduced Oz Renya at this time, from Dept. of Transportation.
Oz Renya stated that Caldwell Bus Company has been given opportunity to participate in federal funding if they chose.  Federal funds availability was published.  Federal guidelines prohibit for-profit carrier but they can work...they have chosen not to participate.  Ms. Lehman said they didn't have the time to go through the process.
Commissioner Nelson asked - are they losing competition because of vans?
Mary Friddle said they have actually lost passengers.
Oz Renya commented - he has given them marketing information.  Once in awhile there is an ad in the paper.
Tim Stivers commented - Caldwell Transportation Company holds interstate authority.  They can't form this front company and continue with their interstate operation.
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Pat Nelson from Vanpooling said - when this van pool program started, we had an agreement with Caldwell Bus.  We inform people of their choices - serve from 7:30 to 4:30.  Do have federal dollars to take care of marketing, but don't feel we have been in competition with Caldwell Bus.
Commissioner Smith asked what the rate was?
Pat Nelson responded - monthly rate is $50 from Caldwell, $48 from Nampa.
**Scott Woodbury and Tom Faull were in attendance at this time.
Pat Nelson continued - have had several calls.. now that they have a chance to go into it, we have people who are ready to go on to a van.  Will take up the slack.
Commissioner Nelson questioned the timing.
Pat Nelson said if someone has to work til 5, they have to ride Caldwell Bus.  Said she called Caldwell Bus about Micron.  They now go out to Micron.
Commissioner Miller said this is a frustrating situation.  Said he had a long history of support for this project.  It was well received over a long period of time.  Was inclined along with Commissioner Nelson to grant a temporary suspension but then allow hearing opportunity for protestants and anyone else.  It is hard to make a decision on the information today.  Would like to see us conduct a hearing to let protestants talk about continued need for service.  There is perhaps some hint that decline for ridership may not be as simple as anyone thinks it is.  For him there is enough public interest that perhaps they could be compelled to continue service until we get to the bottom of this.  To do so now would be a slow investigation.  Would like a hearing relatively soon.  If anybody thinks because of my prior involvement with the company in private practice, I could be excused.  That would be my advice.
Mary Friddle asked about the period of time for the suspension?
Commissioner Miller said he was thinking about 60 days.
Commissioner Nelson said - or until the conclusion of the case.  From our standpoint all we have really heard from is the company.  We don't know what they have actually done to increase ridership.
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Rest of Regulated Carrier Agenda was approved.
2.  Brad Purdy's July 28, 1993 Decision Memorandum re:  EAG-W-93-2 - Eagle Water's Request for Expansion of Certificated Area.
Okayed.  
**Dave Schunke was in attendance at this time.
3.  Brad Purdy's July 29, 1992 Decision Memorandum re:  Establishing Procedure in Water Power's Avoided Cost Case.
Commissioner Miller asked if the testimony was broken out by interim and other?
Tom Faull responded.
Commissioner Miller said if you think that when we put this out... if the testimony is now set up... go directly to hearing and cross examine on that hearing?  Don't know what the right answer is.
Commissioner Nelson said he wondered if the problem will be grandfathering?
Tom Faull said there hasn't been much activity in their testimony.
Commissioner Miller asked what Brad Purdy's feelings were?
Brad Purdy said the company thinks interim rates are needed.  Said it is really a judgement call.
Tom Faull said he thought you could make the decision based on modified procedure.
Commissioner Miller said implication of modified procedure is that Commission is inclined to grant unless someone talks us out of it.  
Commissioner Nelson said if we grant interim rate request, any project too low, could wait until the end of the case to contract at the higher rate.
Commissioner Miller said we could just deny interim rates and go to hearing.
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Commissioner Smith said she feels differently about interim QF rates.  In this case it seems that the interim rate procedure might protect.....by keeping current rates.  
Commissioner Nelson said it would make those making grandfathering requests get into action now.
Commissioner Miller said he guessed in this context.. do interim rates in this case, you would have to say in your mind there is a high probability those are going to be the rates you are going to end up with.  
Brad Purdy said he didn't see harm in allowing 21 days for comment for input to Commissioners.
**21 days for comment.  
**Work on modified language.  Make it neutral.
4.  Brad Purdy's July 29, 1993 Decision Memorandum re:  Substantive and Procedural Decisions Regarding the Twenty-Mile Creek Water Company, Case No. GNR-W-93-1.
Commissioner Miller agreed a prehearing conference would be good.
Commissioner Smith said the best place to do it is Rathdrum because we already have a hearing room.
**Set it for 8:30 a.m., August 11 at the John Brown Elementary School in Rathdrum.
Brad Purdy suggested he will put together an order in response to Beck's motion.
Commissioner Smith said - oral argument on jurisdictional matter also.
Commissioner Miller said if there is still possibility of development of record, think oral argument would be premature.
5.  Lori Mann's July 29, 1993 Decision Memorandum re:  WWP's Demand Side Management Programs:  Case Nos. WWP-E-93-9/WWP-G-93-7.
Commissioner Smith asked if we wanted to do this modified?
Commissioner Miller said he thought modified was fine.  Work on notice so it clearly identifies what the changes are.
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**Go modified, explaining the changes.  Check calendar for timing.
6.  Birdelle Brown's July 29, 1993 Decision Memorandum re:  PTI Advice 93-3 effective August 1 to Allow for a Reduction in the TRS Assessment.
Approved.
7.  Birdelle Brown's July 30, 1993 Decision Memorandum re:  GTE Advice 93-10 Introducing 800 Data Base Query Service, Effective August 10, 1993.
Birdelle Brown explained the filing.  It wasn't totally clear what GTE was asking.  The service itself is an FCC mandated service.  They can file anything they want and we will consider them.
Commissioner Miller asked - isn't staff's usually concern that services like these are below cost.  Wouldn't staff usually like to see as a general matter, these rates be higher.
Birdelle Brown said she looked at it that we are dealing with a regulated carrier... was being cautious about this.
Approved.
8.  Jim Long's July 30, 1993 Decision Memorandum re:  Complaint from CPI Against U S West Regarding Contractual Disagreement and Related Billing.
Commissioner Smith proposed doing a summons, opening a case and getting staff's reply.  
Commissioner Nelson said he would like the problem to be identified.
Ron Lightfoot from U. S. West explained the situation.
Commissioner Smith instructed Ron that US West could respond in less than 21 days, if possible.
Meeting adjourned.
Dated at Boise, Idaho, this 21st day of October, 1993.
Myrna J. Walters
Commission Secretary
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