19940915_1.docx

Minutes of Decision Meeting
September 15, 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, Scott Woodbury, Gary Richardson, Mary Friddle, Eileen Benner, Joe Cusick, Stephanie Miller, Bev Barker, Birdelle Brown, Belinda Anderson, Randy Lobb, Tonya Clark, Terri Carlock and Myrna Walters.
Items from the September 15, 1994 Agenda were discussed and acted upon as follows.
1.  Regulated Carrier Division Agenda dated September 15, 1994.
Commissioner Smith said, for the record, she received a call from Bruce Miller, strongly opposing giving temporary authority to Richard Barney for various reasons:  he was a bad risk, etc.  Said she explained to Mr. Miller that Mr. Barney had a lot of letters of support and his paperwork appeared to be in order and perhaps Mr. Miller would like to oppose the permanent application of Mr. Barney.  Passed the matter on to Mary Friddle and she had a chance to investigate some of Mr. Miller's allegations against Mr. Barney.
Mary Friddle reported that she contacted Mr. Barney's insurance company and they had no claims against him.  Investigated claim of moving a house late at night and hitting cars.  Was not Mr. Barney - was another housemover.
After discussion, Commissioner Nelson moved approval of the Regulated Carrier Agenda, including the application of Richard Barney for temporary authority.  
Commissioner Smith reminded Mary Friddle to make sure Mr. Bruce Miller was on the mailing list to received the notice of the filing for permanent authority, when Mr. Barney makes application.
Other commissioners approved agenda also.
2.  Mary Friddle's September 13, 1994 Decision Memorandum re:  Caldwell Transportation Company, Inc.
Commissioner Nelson moved approval of the voluntary suspension extension until October 1, 1996.
Commissioner Miller commented he hoped staff would continue to work on this matter and keep on everyone concerned.
Other commissioners concurred in approval of the suspension extension.
3.  Joe Cusick's September 9, 1994 Decision Memorandum re:  PTI Business Office in Grandview.
Commissioner Nelson said this was a tough one for him because of the places where U. S. West doesn't have business presence.  It is a fact in most small towns in Idaho.  Asked Bev how PTI customer relations were?
Bev Barker said they have pretty much set it up so they don't have contact with the customers.  No complaints that she knows of.  In the past it was nice having Jann Anderson there but she has retired.
Commissioner Smith said it was a tough one for her also.  Thought staff had good point about requiring presence but have visions of Union Pacific agents sitting with nothing to do.  This could be the same type of situation.
Joe Cusick said there are payphones in town from which the customers can call 800 numbers.
Commissioner Nelson said we could require that they have a local number for repairs.
Joe Cusick said the local manager lives in Mountain Home.  Said he understood this was a tough call.  Company has 1619 lines.  Said he checked on some of the other independents to see how many customers come into their office.  Century gets about 100 to 150 a month in their office, Potlatch in that area, Albion about 50.  Most of them are coming in paying their bill and chatting.  There are some coming in to place orders.
Commissioner Miller said he worried initially that even though he thought it was almost senseless to require maintaining an office here but if we allowed this one to go, they may all want to cut back.  But when you look at it, recognizing the locally-owned ones won't any way, Century would be the only one owned out-of-state -  Potlatch and Troy.  Other distinguishing thing about this case is apparently we have allowed the cutting back of this office over time so it is only open four hours a week.  It is virtually closed.
Eileen Benner said when the company asked to cut back to four hours, it was because Jann Anderson was around town all the time, but only in the office those hours.  Those four hours were ones she would for sure be in the office.
Joe Cusick commented - the people in Grandview may be trained to not use the business office anymore.
Commissioner Miller asked is that was speculation or did Joe have complaints?
Commissioner Nelson asked if that was based on complains he had received?
Joe Cusick responded.
Commissioner Miller said that wouldn't change them having to dial an 800 number.
Commissioner Nelson said we could express our lack of concern for no presence in the state.  Allow the closure with the caveat that they take care of things.  If there are complaints, Commission can look at it again.
Commissioner Miller said - or we could crank this up a notch, treat it as an application and see what the customers say.  If a customer says - we don't use it, don't care if they're here, etc., or if they would like more expanded service, that is another thing.
Commissioner Smith said to send out some kind of notice.  (Modified Procedure asking for comments).
Other commissioners concurred.
4.  Scott Woodbury's September 9, 1994 Decision Memorandum re:  Case No. IPC-E-94-13  Falls River Hydroelectric Project  Firm Energy Sales Agreement--Second Amendment.
Commissioner Nelson said the amendment looked pretty ministerial.
Commissioner Miller asked what the amendment was?
Commissioner Nelson explained.  Said one of the changes was they are going to hook-up directly with Idaho Power now.
Commissioner Miller said he guessed he would approve it even though the high level of scrutiny of these are generally a good thing to do, don't think this contains any preference for rates, etc.
Commissioner Nelson said it was mostly renumbering of the paragraphs.
Approved.
Decision was to approve by Minute Entry.
5.  Scott Woodbury's September 12, 1994 Decision Memorandum re:  Case No. UPL-E-94-6  Buy-Back of Firth Power Purchase Agreement.
Commissioner Smith asked how do you do this so that no one gets away with anything?
Commissioner Miller commented - make them build it.
Commissioner Nelson asked about starting date?
Scott Woodbury said they are talking about right away.
Commissioner Nelson said if we approve this and avoided costs don't go down so the benefits aren't there, would be unhappy.
Commissioner Miller said to approve this would be agreeing that our rates were wrong and even if our rates are too high, at least ratepayers get energy delivered.  It may be expensive but they get energy.  If you approve this buyback, ratepayers pick up $4,000,000 price tag and don't get anything except claim that company will acquire energy cheaper, elsewhere.
Commissioner Smith asked Commissioner Miller if he saw this as different from Meridian?
Commissioner Miller said he thought Meridian had different circumstances.  Afton was a factor there.  It was so unique it would never set a precedent.  
Commissioner Smith said Commission could follow Commissioner Nelson's track and say until we establish new rates, we can't decide if this is a good idea or not.
Commissioner Nelson said he didn't think these rates would change.
Commissioner smith said if there is a drastic reduction in rates, you can say this buy-out is a good deal.
Commissioner Miller said since these are grandfathered, they were at the time, correct.  What happens later doesn't really matter.
Commissioner Smith said if the company can later acquire for a lower price and find a way to get out of the contract, perhaps it is a better economic deal but you won't know that now.
Commissioner Nelson asked what happened to the steam host on this deal?
Scott Woodbury said he told them of the comment period and they chose not to comment.  Said the Company has talked to the steam host and they expressed serious concern about cancellation of the contract.  Company thought they had the wherewith all to require that the project be built.  It seems like the steam host needs were an after thought.  Think that they are also having conversations with Idaho Power about Glenns Ferry and Rupert.  Are waiting to see what happens here.  The ramifications will be beyond this project.
Commissioner Nelson said he thought that was a reason to not make a hasty decision.
Don Howell asked how much they have in the project?
Scott Woodbury said he didn't know.  The utility didn't share it with staff.  If the Commission wants a greater showing, Commission could set it for hearing.
Don Howell said if the Commission's responsibility is to approve the rate, now that you have some saying the price is too high and suddenly there is 4.5 million dollars, you are asking ratepayers to pay for something that was never used and useful.
Commissioner Miller said this isn't really liquidated damages.
Don Howell asked how much did you ever look at this clause in the contract?
Scott Woodbury said there is no clause in the contract for this.
Commissioners assume there is going to be a project.
Commissioner Miller said the viability of the project is a key element of the buy-back.  Whether it can be built is different than can it be built.  If we say no to the buy-back, what do you think the developer will do?
Scott Woodbury said he would have to comply with the terms of the contract.  That might kick in the cancellation terms.  In this particular case, the needs of the steam host it appears the developers are considering different options.  But the steam host is ticked off because they wanted something in place already.  They had deferred because of the developers dealing with Idaho Power Company and Pacificorp.  There was a year delay.
Commissioner Nelson said he was not ready to grant it without further analysis.
Scott Woodbury asked if the Commissioners wanted to set the matter for a prehearing conference to see how it should be processed?
Commissioner Miller said that might not be a bad idea.  Might grant buy out if there is a demonstration that the rates in this contract are too high, according to current operations.  Haven't got to that point as a philosophical matter yet.  Still need to be persuaded that is a reasonable thing to do.
Commissioner Nelson asked about buying down the price instead of a buy-down?
If you were still getting the facility, that is more attractive to him.  The site wouldn't go away.  The steam host still wants something there.  From the conversation it appears all we are going to do is substitute another one for this one.  
Commissioner Miller said negotiated arrangement along those lines might be something to consider.  Don't want to go back and rewrite contracts.  
Commissioner Nelson said if they are thinking of resizing, show us the benefit.  Setting it for a prehearing conference would be a way to flush out some things.
**Matter will be set for prehearing conference.
6.  Scott Woodbury's September 12, 1994 Decision Memorandum re:  Case No. UPL-E-94-7  Power Purchase Agreement--Buffalo Hydro, Inc.
Approved.
7.  Terri Carlock's September 6, 1994 Decision Memorandum re:  Washington Water Power Company's Request to Expend the Authority to Borrow Short-Term Debt - Case No. WWP-S-90-3.
Approved.
8.  Don Howell's September 13, 1994 Decision Memorandum re:  Proposed Amendments to the Telephone Customer Relations Rules, Case Nos. 31-4101/31.D-R-92-4.
Started with 308.01 -
Commissioner Nelson asked how readily available toss n talk cards were?
Belinda Anderson said in Boise are they are more readily available - at Gopher stations, etc.  Not sure in rural areas how readily available they are.
Commissioner Miller said these companies aren't going to go broke over these few customers.  Medical access is clearly priority.
All three commissioners agreed to go with staff on this.
2.  Rule 310 - Insufficient Grounds for Termination of Local Exchange Service.  
Was discussion on the dollars versus time.
Commissioner Smith said she thought the rule was fine as is.
Commissioner Miller said if they haven't paid in 2 months, they should pay something.  Left the two months' charges for service in the rule.
3.  Rule 310.0-3  Insufficient Ground or Termination of Local Exchange Service - taking out redundant language in sub section (5).
Approved.
4.  Rule 312  Payment Arrangements.
Don Howell said if they pro rate, everyone would get something.
Approved proposal.
5.  Rule 501 (Complaint of Telephone Company).
Approved proposal.
Commissioner Smith said to answer Idaho Consumer Affairs concerns with Rule 312, that allowing customers to allocate partial payments among providers might inadvertently provide insufficient funds to pay the local service charges, direct them to the provisions for keeping their local service.  
Final rules will be issued - only those proposed changes need to be published in final.  Will save publication money.
Meeting adjourned.
Dated at Boise, Idaho, this 16th day of September, 1994.
Myrna J. Walters
Commission Secretary
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