19930812.docx

MINUTES OF DECISION MEETING
August 12, 1993 - 1:30 p.m.
In attendance were Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members, Tonya Clark, Stephanie Miller, Lori Mann, Syd Lansing, Eileen Benner, Terri Carlock, Dave Schunke, Treva Pline, Birdelle Brown, Bev Barker, Belinda Anderson, Joe Cusick and Myrna Walters.  Also in attendance were Jim Wozniak from U. S. West and Walt Sorg from GTE.
Items from the August 12, 1993 Agenda were considered and acted upon as follows.
1.  Regulated Carrier Division Agenda dated August 12, 1993.
Approved.
3.  Randy Lobb's August 6, 1993 Decision Memorandum re:  Public Drinking Water Fee Assessment.
Commissioner Smith said it was her understanding that this DEQ water assessment wasn't approved so no one knows if it is being charged.
Tonya Clark said the rule didn't actually go before Health & Welfare itself until September.
Stephanie Miller and Tonya Clark discussed what process could be here at the Commission to keep the ball rolling and recommended rulemaking.
Commissioner Smith said it seemed we need some mechanism that treats everyone the same.
Commissioner Nelson said it is a significant enough expense that we need to address it.
Discussed DEQ concerns.
Stephanie Miller said each investor-owned utility wants it to be derailed.
Commissioner Miller asked - do they think the investor-owned utilities will do something legislatively?
**Jim Long was in attendance at this time.
Stephanie Miller said we are getting all these calls from DEQ asking about recovering costs.
Commissioner Nelson said he wondered if staff was going to audit all utilities?
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Commissioner Miller said if its a separate pass-thru you don't need to worry about earnings.
Stephanie Miller said the way the regulations they are proposing are written, it is a flat fee based on customer levels on July 1.  Charges begin October 1.  There is nothing that says as much as you collect from your customers is what you owe to DEQ.
Commissioner Smith said there is some chance that the utility may collect more or less than they pay to DEQ.
Stephanie Miller said staff could propose true-up at the end of the year.  Then adjust it next year.  Suggest to DEQ that they revise their rule.
Tonya Clark said the whole thing has been a misunderstanding, because Boise Water and South County thought it was a true pass-thru.
Commissioner Miller said at this point the best option would be a true-up.
Stephanie Miller said the PUC could do it.
Commissioner Miller asked about suggesting we do true-up for the first year and DEQ can work on rule change.
Stephanie Miller said she wondered how to handle it administratively?
**Do it individually as they file tariffs.
Commissioner Miller said he thought we needed something in writing on how we are going to do this.
Commissioner Nelson suggested letting them put in a tariff setting out the pass-thru and DEQ grant waiver...
Commissioner Smith suggested a letter from Stephanie Miller setting out the process.  Then as each tariff comes in, give notice.
Commissioner Miller asked about how to deal with over-collection?
Commissioner Nelson gave an example.  Overpayment will reduce the amount next year.
**Would required DEQ to true-up.
Commissioner Miller asked what would happen if Boise Water sends too much and others send in not enough, so DEQ stays beneath their budget?
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Commissioner Nelson said - then no individual customer has been treated unfairly.  Only change is going to be based on growth and decrease in customers in company.  Don't believe it could be more than 2%.
Stephanie Miller explained.  Your charge is not necessarily correct.  What you should do is base the charge on customers each October 1.  Number could be over or under then.  It is going to be paid for monthly.  Was assuming it will be a monthly charge.
Lori Mann asked about Boise Water?
Commissioner Miller said they ought to start with actual October 1.
Commissioner Miller said collection should be based on best customer number you have.
CONCLUSION:  flat fee pass-thru, if the utility wants to.  Company needs to propose how they will do it.
Stephanie Miller asked if she should still write letters to the utilities and tell them that they have to show that they passed all the money through to DEQ or they have to true-up.  Tariffs will only be good through September.  In the meantime we will work with DEQ to get the rules changed so there won't have to be true-ups.
Tonya Clark asked about it being rulemaking?
No rulemaking - letter from Stephanie Miller will be sufficient.
4.  Syd Lansing's August 9, 1993 Decision Memorandum re:  U S West Application Regarding Depreciation.
Commissioner Nelson asked if this was extra depreciation, is that sound accounting theory, what they want to do?
Syd Lansing said he was quite certain they will have an explanation but just to do it, no.
Commissioner Nelson asked if there are agreed depreciation rates, why do they want to change it?
Syd Lansing said he didn't know the answer.  If they decide to do it is in effect a write-off.
Commissioner Nelson said he guessed it just struck him the only way we would approve it is there is revenue-sharing, is it sound theory?  We work forever on this reserve deficiency.
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Syd Lansing said we use the remaining life technique that over a period of time does write off the reserve deficiencies.  On an individual account basis, for new equipment, they do it.
Jim Wozniak said he thought it was a matter of the company seeking some additional control in a state like Idaho where we have revenue sharing plan given our view of what we expect to happen over the next 3 years (competition, technology, etc.)  The 4.7 million dollars you can look at the same way.  We are not seeking off-setting rates.  Would like the ability given what may change.  If in a particular plant account we feel like we are able, to excellerate the depreciation...it does the same thing, get that asset base, depreciation factor.  It is a little more flexibility for the company.
Commissioner Nelson said he didn't see any detriment to the ratepayers.
Okayed.
Commissioner Smith asked - how do we usually to do this?  Is a letter from Utilities Division sent?
Follow the historic position.
5.  Terri Carlock's August 9, 1993 Decision Memorandum re:  WWP-E-93-9, WWP-G-93-8, Request for Accounting Order.
Okayed.
6.  Belinda Anderson's August 10, 1993 Decision Memorandum re:  GTE's Tariff No. 93-11 to Increase Springfield's Rates per Order No. 24929.
Approved.
2.  Mike Gilmore's July 20, 1993 Decision Memorandum re:  Petition for Toll-Free Calling from Troy to Moscow--Case No. GNR-T-92-4.  (Held from previous decision meetings)  Case Now assigned to Lori Mann.
Commissioner Smith said what she would like to know is what has happened since the hearing - How is that all working out?
Jim Long said he talked to AT&T yesterday.  They mentioned nothing about those efforts.
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Commissioner Nelson asked how much sentiment is there to roll this into our EAS study, what do we need to decide?
Commissioner Smith said she thought people were entitled to a decision in this case but they probably won't like the decision.  Think it should be re-examined.
Commissioner Nelson said the thing that made him hesitate granting the EAS is the effect it will have on the Universal Service Fund.  If this is 19th in toll calls, what effect are 1-18 going to have?  Asked Commissioner Miller what he wanted to do?
Commissioner Miller said it is a very difficult problem.  Thought Jim Long did a good job in testimony and analysis.  The evaluation of community of interest is not a yes or a no, it is a judgement call.  There is a lot of evidence pointing to community of interest.  It is 19th on the list of 141.  Cutting the other way for the community of Troy itself for access to quite a few essential services that you usually look at.  It is not a school travel EAS.  The by-lateral nature of the relationship is lopsided.  Ended up with the conclusion that Moscow to Troy is weaker than Troy to Moscow.  So on a community of interest basis, don't think it was strong enough to drive him to the conclusion of doing EAS at any cost.  That is what he thought about it.  But when you looked at the cost, it is difficult to look over.  Taking away 17% of its interlata, interstate access revenue...
Commissioner Nelson said he thought most of the pressures were employment and don't know if we have ever considered employment costs, just schools.  Leon was similar.
Commissioner Miller said even if you put Troy's rate at the USF threshhold you would still have to recover $80,000 from USF (30% of Troy's not being covered by USF) think we should be very careful about that problem.  If we grant this, then we will have petitions from Troy and Boville so the balance of community of interest given the cost and number of direct benefits, reluctantly it is pretty hard for him to get there.
Commissioner Smith said in the interest of consistency, if you compared this to Albion/Burley, looks about the same.  Had a lot of employment opportunities.
Three no votes.
Put in the order that the whole EAS matter is being considered.
Meeting adjourned.
Dated at Boise, Idaho, this 26th day of October, 1993.
Commission Secretary
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