19940307.docx

MINUTES OF DECISION MEETING
March 7, 1994 - 1:30 p.m.
In attendance at this time were Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Gary Richardson, Stepanie Miller, Brad Purdy, Triva Pline, Terri Carlock and Myrna Walters.  Also in attendance was Jeanette Jackson of Idaho Power Company.
Items from the March 7, 1994 Agenda were discussed as follows.
1.  Regulated Carrier Division Agenda dated March 7, 1994.
Approved.  (No discussion).
2.  Brad Purdy's March 1, 1994 Decision Memorandum re:  Case No. IPC-E-92-18.  Idaho Power's Application for Approval of Accounting and Ratemaking Treatment of Costs Related to its Power Quality Program.
Commissioner Smith said there were a couple of area of dispute.  She had a copy of the last Commission Order in this case, with her.  Order allowed IPC to defer certain costs.
Commissioner Miller asked about the labor issue?
Commissioner Smith quoted the prior order, regarding labor costs.  
Commissioner Nelson asked why have them defer it if they were going to recover it over 12 months?
Terri Carlock responded.
Discussed the dollar amount.
Commissioner Smith said in the previous order, Commission put in pretty strong language about rate case.
Commissioner Nelson said this amount of money in the whole scheme of things is very small - 27-thousandths of 1% of 1993 operating revenue.
Commissioner Miller said notwithstanding the order, in addition to the order, its hard to see if this labor cost is incremental.  For that reason, would say maybe no to the labor.  Wanted to be persuaded on 24 or 12 months.  Didn't want to allow the labor but want to be persuaded on 12 versus 24.
Commissioner Smith said she noted in their reply to staff comments they argued that they didn't hire additional personnel because of power quality.  Those additional costs will be proformed in when they file a rate case.  That is why they should recover that.  If it is that serious a thing, should be in here.
Commissioner Nelson said if they amortize over 24 months, (the small amount), hardly seems worth going to battle over either way.  Said he would deny labor costs and give them 24 months.
Stephanie Miller commented she thought staff originally said to expense it.
Commissioners Smith and Miller concurred with Commissioner Nelson's suggestion.
Meeting adjourned.
Dated at Boise, Idaho, this 10th day of March, 1994.
Myrna J. Walters
Commission Secretary
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