19940707_1.docx

MINUTES OF DECISION MEETING
July 7, 1994 - 1:30 p.m.
In attendance at this meeting were Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Weldon Stutzman, Scott Woodbury, Don Howell, Brad Purdy, Don Oliason, Terri Carlock, Syd Lansing, Tonya Clark, Wayne Hart, Keith Hessing, Mary Friddle, Gary Richardson, Jack Taylor and Myrna Walters.  Also in attendance were Mary Hobson and Ron Lightfoot of U S West.
Items from the July 7, 1994 Agenda were discussed and acted upon as follows.
1.  Weldon Stutzman's July 28, 1994 Decision Memorandum re:  Motor Carrier Hearings.
Approved.
2.  Robert Horton's June 30, 1994 Decision Memorandum re:  Railroad Clearance Waiver for Stegner Grain & Seed Company  Case No. CP-RR-94-1.
Approved.
3.  Don Howell's July 5, 1994 Decision Memorandum re:  UP's Petition to Close the Ponderay Grade Crossing.  Case No. UP-RR-94-2.
Don mentioned the letter received from the City of Ponderay, indicating they did not want the crossing closed.
Asked Commissioners if they wanted to do modified procedure or a hearing?
Commissioner Nelson suggested modified procedure with a visit to the site when the Commissioners were in Sandpoint, later this month.
Don reviewed the protest.
Commissioner Nelson commented it did cut off access to about 3 businesses.
Don Howell explained.
Commissioner Miller agreed the Commissioners could look at it.
After brief discussion, decision was to hold the item until the first decision meeting in August.  Commissioners will have visited the site by then.
4. Regulated Carrier Division Agenda dated July 7, 1994.

Approved.
5.  Wayne Hart's June 16, 1994 Decision Memorandum re:  Advice Letter No. 94-U3 from UP&L; Electric Check.  (Held from June 22, 1994 Decision Meeting).
Commissioner Smith commented - if they are already paid 6 cents, why couldn't they pay 10 cents.
Commissioner Nelson said he was kind of convinced by the company's argument in their latest submission.  There were some additional costs involved.  They want it to be successful.  If it is not, would guess they would come back and drop the 5 cents.  Was willing to go along with them on trial period 15 cents.
Commissioner Miller said he could do that - the 15 cents is a savings to the customer.
Commissioner Nelson commented - these will be people who mailed in.
Commissioner Miller said he thought the trial, with the caveat that if it is continued beyond that, there should be conciliation.
Wayne Hart said the contract is for 2 years.
Commissioner Miller asked why 15 months?
Commissioner Smith said she thought they could be collecting 10 cents.
After discussion, commissioners approved company proposal for a trial period of 2 years.
6.  Birdelle Brown's June 28, 1994 Decision Memorandum re:  GTE Advice 94-07 to Correct Previous Filing.
Approved.
7.  Syd Lansing's June 29, 1994 Decision Memorandum re:  GTE Depreciation from the 1994 Three-Way Meeting.
Decision needed was effective date.
January 1, 1994 was decided upon.
Syd Lansing explained what happened the last time this was submitted.
Commissioner Nelson recommended it be done by order.
Commissioner Miller asked if notice was necessary?
After brief discussion, was decided to just approve.
8.  Brad Purdy’s June 28, 1994 Decision Memorandum re:  Case No. GNR-E-2:  Resolution of Electric Curtailment Plans.
Staff is asking - approve the plans in the file, adopt regional for those who did not file - all the stipulations set out in the memo?
Commissioner Miller said he was a little confused on the ICUA plan.
Keith Hessing responded - they were not asking to be exempt, they are negotiating to contract for that.  Maybe they could get an exemption if it was necessary.  Suggested saying they are not exempt but if they want to have a third party they can do that.  
Commissioner Miller said that was his only concern.
Agreed with staff to approve the plans submitted, adopt regional for those who did not file and approve stipulations filed.
9.  Brad Purdy’s June 30, 1994 Decision Memorandum and July 5, 1994 Addendum to Decision Memorandum re:  Case Nos. WSM-W-93-1 and WSM-W-94-1  Staff’s Motion for Show Cause Order.
Brad Purdy reported on his conversation with Boise Water.  Said item of contention is the new well.  Wise wants $150,000.  Boise Water didn’t know what they will get from us and Mr. Wise wants it all up front.
Commissioner Nelson asked if Mr. Wise got his permits for that well?
Brad Purdy said to his knowledge he has not.
After brief discussion, matter was deferred until the next decision meeting.  Brad Purdy will gather more information from Boise Water Corporation.
10. Brad Purdy’s July 1, 1994 Decision Memorandum re:  Case No. WWP-E-94-4--Request of Washington Water Power company for Extension and Modification of it's Power Cost Adjustment Mechanism.
*Staff agrees commission should adopt PCA of WWP.
Brad Purdy said if the commissioner are not happy with it, no reason to put sunset on it.
Commissioner Nelson said given the commission is going to have a lot of hearings with WWP, don’t know if we want to do this indefinitely, want to look at it sometime.
Keith Hessing said anytime you have a general rate case it will be looked at.
Terri Carlock said - will have to look at it after the sale.
Commissioner Miller said he wondered if we have enough information to consider the CT issue.
Discussed that question.
Keith Hessing said it could be considered in the power cost adjustment.  The problem is the model uses monthly.  Combustion turbine often operates for a short period of time.  
Commissioner Miller said he didn’t know how big an issue this is.
Keith Hessing said it is not a big enough issue with the company.
Commissioner Miller asked about not doing CT costs at all?
Keith Hessing said that is the way it is in the current PCA.
Commissioner Miller suggested saying we will address it later when it is a real issue.  If it is not that big a deal, might be better to think about it.
Keith Hessing said he didn’t have a good feel for what they are using now.  That could change.
Commissioner Miller said their integrated resource plan looks forward....
Keith Hessing said he didn’t believe either one of them are combined cycle (projects).
Commissioner Miller said his recommendation would be that we do it without the CT.  It may not be that big a deal, but think we should hear more about it.
No CT.
11. Don Oliason’s July 1, 1994 Decision Memorandum re:  Commission Order No. 25172 Directing Harden Pines Water Company to Accomplish Certain Tasks and to Follow Certain Procedures Regarding the Eventual/Rimrock Service Area.  (Case No. HPN-W-91-1.
Don Oliason speak to customer comments.  Don and Randy have spend sometime with Boise Water discussing sequestering.  Said there was an outage up there.  customers spoke to getting in a petition.
Commissioner Nelson said before we issue any kind of order, would like more information on the injection rate and whether or not staff thinks it is consistent enough and there is a good chance it will take care of the problem.  They have been putting it in at a much lower injection rate.
Don Oliason said according to the chemical manufacturer, the was to be 4 - then they changed it to 8.  So it has been at 8 for about 6 weeks.  that isn’t long enough to get this program done.
Don Oliason will be going up the end of the month or first of August.  Depends on when they are ready.
Commissioner Smith asked if this decision memorandum could be held until Don Oliason returns.
**Hold til August.
12. Scott Woodbury’s July 1, 1994 Decision Memorandum re:  Case No. IPC-E-94-11 Firm Energy Sales Agreement IPCo/Koyle Hydro, Inc., Second Amendment.
Approved.
13. Scott Woodbury’s July 5, 1994 Decision Memorandum re:  Case No. PPL-E-94-1/WWP-E-94-1 - Proposed Sale of PP&L Sandpoint District to WWP,  Northern Lights Motion for Continuance.
Commissioner Smith reviewed Northern Lights’ concerns.
Commissioner Miller said his reaction was perhaps Northern Lights didn’t understand.  Maybe it wasn’t clear that there was a separate case on the merger.  To try this in this case, would be the tail wagging the dog.  If the merger is in the public interest and won’t increase rates... Said his own opinion is we don’t need to try the merger case... but if necessary a thorough and independent review will be made of it in a separate proceeding.
Commissioner Smith said after we got all the public interest and after all the responses we have sent, thought we should continue with this hearing and the motion could be continued then.
Commissioner Nelson commented - perhaps they could come up with a more substantive motion.
Commissioner Smith repeated she didn’t think the hearing should be cancelled.  Perhaps there will need to be another hearing later on.
Commissioner Miller asked about the public hearing?  His suggestion for procedural forms is to do away with night public hearings.  If it was important enough, they could make some arrangement to be at the technical hearing - is just a procedural suggestion.
14. Don Howell’s July 5, 1994 Decision memorandum re:  U S West’s Opposition to Idaho Cable TV Associations’s Intervention in Case No. USW-S-94-3.
Commissioner Nelson commented - the issue is really whether or not video dial tone services is an issue, rather than intervention.
Don’t think it could be too much of an issue until it is approved by the FCC.
Commissioner Miller said he thought both parties got sidetracked.  For a long time revenue sharing was sustainable.  There weren’t any competitors so we didn’t have to worry about it.  this illustrates a bigger issue may be a real issue..,. because the statute itself does preclude cost subsidy.  Said his attitude was we should generally say that issue is relevant and each video dial service...best way to approach it would be to allow intervention with caution about unduly broadening the issues.  If subsequent testimony shows it is not what the legislature intended, motion to strike might be appropriate.  That was his idea.
Commissioner Smith asked how he would articulate this bigger issue?
Commissioner Miller said - whether revenue sharing was precluding competition .. has potential for unfair advantage.
**Decision was to grant intervention with general caution about going too far.
Commissioner Nelson said if you don’t decide it til you go to hearing and they put it in testimony ... it would...said to define issues primarily.
Commissioner Miller said if anyone thinks they are off the mark, they could file motions to strike.
Commissioner Nelson said he thought the Commission should issue a ruling on this.
Don Howell said now that we know who the parties are, after comment period, would see where the comments fell and proceed.  
15. Don Howell’s July 5, 1994 Decision Memorandum re:  Staff Comments and Recommendation for processing the 1993 Revenue Sharing Report, Case No. USW-S-94-2.
Commissioner Smith asked - on interest accruals adjustment, you have the ‘92 number - will ‘94 be the same?
Syd Lansing said no.  Explained how hard it would be to predict.
Commissioner Smith asked - when you are applying construction overruns against this number, do we know if the construction overruns are going to be the same?
Syd Lansing replied - we don’t know that.  Most of them appear to be going up.
Commissioner Smith asked - we should agree to capitalize an unknown amount?
Terri Carlock responded - you would treat it as any other investment.
Commissioner Smith asked - why should we automatically approve these overruns?
Terri Carlock said i you book it, it will come up in a rate case.
**Will send the proposal out on modified procedure for comment.
16.  
No. UPL-E-93-4, Island Power v UPL, Petition for reconsideration.   
Matter will be held until next decision meeting.
Meeting adjourned.
Dated at Boise, Idaho, this 28th day of July, 1994.
Myrna J. Walters
Commission Secretary
mjw
07-794.min