19930804.docx

MINUTES OF DECISION MEETING
August 4, 1993 - 10:30 a.m.
In attendance were Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Brad Purdy and Myrna Walters.  
Item on the agenda was No. 1 - Issuance of Boise Water Rate Case Order - Case No. BOI-W-93-1.
Commission President Marsha H. Smith opened the meeting.  
Commissioner Smith said the details are contained in the press release.  Would like to express her view that this offers Boise Water, county and city officials, and water irrigation districts an opportunity to work together to plan for the future.. by investigating dual systems so good drinking water doesn't go to irrigate lawns.  Hope the company takes that serious and works for solutions to that end.
Commissioner Nelson said he didn't have any prepared remarks.  Does feel in some ways thgis order is an interim order, interim rates, since we disallowed invdstment in Marden.. that plant will be finished soon and we expect another rate case in the future.  Expect to get the Conservation Report this fall that will change the way some conservation expenses are handled.  Don't have too much to say other than that.
Commissioner Miller read a prepared statement.  Said (1)  On Marden Street plant which we did not allow into rate base, agree that Commission had no real choice other than to disallow this and that in the short term it is good for customers but we are setting ourselves up for rate shock in the next rate case and are matching cost of compliance with Save Water Drinking Act. Public doesn't understand those costs.  Public is suddenly being consumed with those costs.  That is an unavoidable problem in the case.
On conservation adjustment, agree that the original adjustment was flawed so we couldn't allow it in this case.  Hope the company doesn't think of this as a rejection...since we are in the early days of conservation implementation and are personally receptive to the idea that there may be financial consequences of conservation.  Agree with Dr. Powers that fully-implemented conservation program may alter... and some adjustments may be necessary.  Hope that all the interested parties in this case will work together to explore that issue further and if the Commission needs to provide some manpower... would be in favor of opening a proceeding for that.    
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(3)  Order also implements a new rate design scheme by adding an extra increment in the summer.  Although this required a lot of discussion between everyone, is great that we could do something to implement this concept.  Logic behind summer rates is compelling.  Water is more expensive in the summer.  Customers should know cost of service they are busing.  In this case we have set the level very conservatively.  We anticipated a cost of service study so customers could evaluate their useage patterns.  
(4)  With respect to the dual system, it does have merit.  We could have required Boise Water to implement, but think voluntary is a good idea.  
Would like to say the process was good.  Had good testimony from both staffs.  Was very pleased with it.
Commissioner Smith said - with that, the Commission has signed the order and will issue it today and therefore the meeting will be adjourned.
Adjourned at 10:40 a.m.
Dated at Boise, Idaho, this 22nd day of October, 1993.
Myrna J. Walters
Commission Secretary
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