19940712_1.docx

MINUTES OF DECISION MEETING
July 12, 1994 - 1:30 - p.m.
In attendance at this time were Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Don Howell, Brad Purdy, Scott woodbury, Tonya Clark, Eileen Benner, Bev Barker, Gary Richardson, Birdelle Brown, Belinda Anderson, Stephanie Miller and Myrna Walters.  Also in attendance were Aloa Stevens from Citizens Telecommunications and Ron Lightfoot from U S West.
Items from the July 12, 1994 Decision Meeting Agenda were discussed and acted upon as follows.
1.  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.  (Held from 07-07-94 Decision Meeting).
Commissioner Smith asked Brad Purdy if there was an update on Warm Springs Mesa?
Brad Purdy said the company has not made a filing.
Commissioner Miller suggested doing a show cause and make the time 21 days.  Maybe issuing an order will move them along.  Don't know if it will move things along or upset things.
Brad Purdy said the impression he gets from the parties is if they come to an agreement there should be a filing within the next 7 days.
**Terri Carlock was in attendance at this time.
Commissioner Miller said we could say you have until next Thursday (date of next decision meeting) and if you don't do something we will issue an order.  Or could give them 2 or 3 weeks to respond.
Commissioner Nelson said he didn't know whether issuing the order helps the deal or hurts it.
Brad Purdy said he could talk to Wayne Booe tomorrow and if he does not give any indication of a filing, could issue the order.
Commissioner Miller said waiting is fine but wanted Brad Purdy to check with Wayne Booe the next day.  Could have the order ready for the commissioners to sign if nothing is happening.
Agreed.
2.  Eileen Benner's July 11, 1994 Decision Memorandum re:  CTC-T-94-1:  Citizens Tel Application & Supplemental Application.
There were eight issues to discuss.
1.  Central Office Technology.
Commissioner Nelson said he was wondering since 7 cents a minute is less than statewide average, wondered why they would want to do that?
Eileen Benner said that is just one part of it (of the three elements).  Right now Citizens is 17 cents total.  Statewide is a little over 8 cents.  Going from 17 to 16 cents and are working to get down to 8 cents.
Commissioner Miller asked what specific plans there are for future reductions?  There is a generalized idea that Citizens will monitor for the future.  Is that all we know about at this time?
Eileen Benner said she thought maybe the thinking was at the end of '95 company would be looking at total revenue after major construction, run the operation for a couple of years and at that time revenue requirements could be calculated and all rates could be looked at.  Thought that was all they could offer until they got more information.
Commissioner Miller said he didn't think we should take a 1 cent reduction and forget about it.
Commissioner Nelson said he agreed but there are a lot of other reductions here.  Can see why they want to see what happens on this.
Commissioner Smith said maybe we could charge U S West with keeping an eye on this.
3.  Zone charges.  
Commissioner Smith asked are all exchanges going to be upgraded by '95 so they will come off as upgrades occur?
Eileen Benner explained how GTE did it.  Didn't think held orders was an overwhelming issue.
Don Howell explained how GTE's were done.
Commissioner Miller said GTE's percentage of multi-party was much higher.  There are only 5% left here.
Aloa Stevens of Citizens explained.
Commissioner Nelson said he wondered about changing company plan without a hearing.
Commissioner Smith's suggestion was combining zone charges and one party.
Aloa Stevens explained.
Commissioner Smith said for those customers who have zone charges, when you come to one party and you want them to move, maybe that helps with transition.  To her that fit.  Suggested doing it all together.  Thought zone charges, one party and touchtone go together.
Commissioner Miller said particularly when we are at 95% one party, we are not dealing with a reluctant utility and don't need incentives.
Aloa Stevens said five exchanges will be done by year-end.
Commissioner Smith proposed going with the company suggestion for zones, one party and touchtone.
Eileen Benner asked about the timing?
Aloa Stevens said this gives the company time to talk to the customers.
Commissioner Smith said she wondered about the cabin owners.
Commissioner Miller said he wanted to stick in the requirement of Aloa's office.
Said we should ask staff to keep observing personnel and managerial question and let commissioners know if it is at an acceptable level.
6.  Whitebird-Grangeville.
Staff wants by October 15 - company by the end of the year.
Commissioner Miller suggested the October date.  Okayed by all commissioners.
8.  Wilder-Parma EAS.
Commissioner Smith's suggestion was to get the notice out and do the cutover about December.
Commissioner Miller was wondering if we didn't want to preliminarily approve it but don't have much of a record.
Eileen Benner said we have a decision meeting and we can put those comments in the modified procedure.
**Commissioner Miller said we shouldn't give away too much of our statewide plan at this time.
Eileen Benner said she thought we had already issued an order saying a statewide investigation was going on but there are special circumstances here.
Commissioner Smith said the "crack" legal staff will make sure we do the right thing.
Asked about effective date?  It is now JuLY 12 and they had proposed July 1.  Looks like we have some choices.
Commissioner Nelson said all bills will be prorated also.
Aloa said it takes about 60 days until the billing hits.
Commissioners agreed on September 1.  
FULLY SUBMITTED MATTERS
1.  Scott Woodbury's July 5, 1994 Decision Memorandum re:  Case No. UPL-E-93-4, Island Power v. UPL Petition for Reconsideration.   
Scott Woodbury spoke to the phone call between Ramish and Smith.  Quoted from the transcript.  Had a conversation on January 4.  Followed up with a January 6 letter.  
Commissioner Smith asked where the testimony was about the conversation with Topham?
It was sent on the 20th.
Commissioner Smith said it seemed to her that there was no binding offer.
Commissioner Miller said he thought the ability to make the offer (the ability to contract and decide to contract are clear, and that stretches back to July.  Island Power made it clear they were ready for a contract with Idaho rates.  Then of course the company said it wouldn't negotiate an contract.  So as far back as July, had willingness to contract combined with physical signs of the project, seemed to him from that you would infer in part the developer's willingness to contract.  Why would you build if you don't want to contract.  Thought that distinguished it from A. W. Brown.  What we were really dealing with there was once it becomes a QF, (so said Brown) that carried with it a legal obligation.  It is a much different approach.
Commissioner Nelson said he thought what distinguishes his opinion from Commissioner Miller's is the opinion on physical maturity of the project.  At the hearing it came out they had to redesign the generator.  We didn't have new scheduling often.  That changed the point of the interconnection.  The whole thing was redone and they really had just barely started on it.  Hadn't given any new scheduling requirements.
4.  The 35 year versus 20 year.
There was no agreement.  It could have been that all of that design work was done but nobody ever told us that.  There was no scheduling time given to Pacificorp., the transmission carrier.
Commissioner Smith said if you step back from the things that matter to our decision, and look at other facts but they are totally irrelevant to our decisions.  Assume that they get transmission but still can't see that they were ready to sign on the line.  They don't even know when the project is going to produce energy.
Commissioner Miller said here the consequences of the decision are:  the facility probably won't be built,... asked if this was a 4 mill project?  By contrast it almost seems that if these are viable gas projects they should be built.
Commissioner Smith asked if there are other resources out there at better rate, why sign off on this?
Commissioner Miller said the argument - acquiring a project may be a good deal for the customers.  Discussed the term of the contract.  Almost have to assume inflation factors are wrong.  
It is a difficult case when you consider the surrounding circumstances.  There is also a good idea this guy will build and sell to Montana or sell it into Idaho at the same rate.
Commissioner Smith said he has to either build it or get out.
Commissioner Miller said the other approach is we could grant reconsideration and listen to oral arguments.
Commissioner Nelson said he thought that would be expensive.
Commissioner Smith said she didn't think there was anything left to say.
Order has to be issued by July 22.
Two votes denying reconsideration.
Decision Meeting adjourned.
Dated at Boise, Idaho, this 9th day of August, 1994.
Myrna J. Walters,
Commission Secretary
071294.min