19941220_2.docx

MINUTES OF DECISION MEETING
December 20, 1994 - 1:30 p.m.
In attendance at this time were Commissioners Marsha H. Smith, Joe Miller and Ralph Nelson and staff members Belinda Anderson, Joe Cusick, Weldon Stutzman, Beverly Barker, Birdelle Brown, Don Howell, Tonya clark, Gary Richardson, Marge Maxwell, Don Oliason, Keith Hessing, Syd Lansing, Lynn Anderson, Mary Friddle, Scott woodbury, Eileen Benner and Myrna Walters.  Also in attendance were Sam Taylor or Idaho Power Company, Ron Lightfoot of U S West, Lance Tape of Citizens Telecomm and Woody Richards, Attorney at Law.
Items from the December 20, 1994 Agenda were discussed and acted upon as recorded herein.
1.  Regulated Carrier Division Agenda dated December 20, 1994.
Approved.
1A. Mary Friddle's December 20, 1994 Decision Memorandum re:  Richard Barney - Case No. M-8097-2.
Commissioner Nelson asked if it was staff's recommendation to approve the permit?
Mary Friddle responded that the carrier had met all PUC requirements.  
Commissioner Nelson moved approval.
Commissioners Smith and Miller concurred.
2.  Lori Mann's December 7, 1994 Decision Memorandum re:  White Bird/Grangeville EAS.  (Continued from 12-9-94 Decision Meeting).
Commissioner Smith had correction to Birdelle's numbers.
Commissioner Miller asked where we are on this case?
Commissioner Smith reviewed the matter.  Said it appears we do something once a year on this case.  In between the territory got sold to Citizens.  Now we have Citizens information and its come back to us again.  They provided cost data but also sent letter.
Lance Tape of Citizens said the company wanted to make four points.  It is a high-cost route.  The increment recommended by staff recovers 7% of the cost on implementing EAS route.  The remaining 93% would be recovered by remaking Idaho choice.  That is a concern.  (2)  The rate increment that staff came up with is based on two-way EAS.  In this case they won't recover benefit from Grangeville side (it is U S West).  (3) Regarding the fact that because it is an intra-lata route and there are some pricing changes facing us in the future - there is some question about the long run costs.  (4)  Because it is going between Lata boundaries, will have to get Lata waiver.  Either Citizens or U S West will have to do that.
Commissioner Smith asked if Citizens was under a prohibition?
Lance Tape said it was a messy arrangement and a costly one.  Revenue requirement would be $28.00 a month.  The cost per customer would need to be set at $4.25 per month.  Currently it is just under $2.00 a month per customer.  Took the quote from the interexchange carrier, split it in two, divided that by the number of customers.  
Commissioner Nelson said his initial thought on this is that it is desirable but it is too expensive.  Haven't been able to get over the cost issue.
Commissioner Smith said even if you charged $5.00 a month that would reach 60%.
Commissioner Miller asked Birdelle what she thought of the company's numbers just presented?
Birdelle said it is quite a bit higher than last year's quote.  Only way to get it any cheaper would be to get a north/south backbone.
Commissioner Miller said even though there is a broader range of customers, it is a big expense to spread around.
Commissioner Nelson said 12% of the customers are driving this.
Commissioner Smith asked what AT&T charges on that route?
Birdelle said it was a short haul and they are up in price.  Don't think it overwhelms the costs associated with the project.
Commissioner Smith said she couldn't remember the public hearing. Sounds like something they are not going to be able to pay for.
Denied EAS.
U S West (North)'s Filing No. 94-13-N for the New Interest Rate to be effective January 1, 1995.
Approved.
4.  Belinda Anderson's December 7, 1994 Decision Memorandum re:  U S West (South)'s Filing No. 94-10-S for the New Interest Rate to be effective January 1, 1995.
Approved.
5.  Rick Sterling's December 13, 1994 Decision Memorandum re:  tariff Advice 94-01; South County Water Company.
Approved.
6.  Scott Woodbury's December 14, 1994 Decision Memorandum re:  Case No. WWP-E-94-9  Investigation--tariff Schedule 51 Compliance Consent Agreement.
Decision was:  accept the consent agreement and close the case.
7.  Scott Woodbury's December 14, 1994 Decision Memorandum re:  Case No. WWP-E-94-1  PCA Surcharge.
Commissioner Nelson said it looked like it was in accordance with prior orders.
Commissioner Miller asked Keith Hessing for information, assumption was Potlatch wouldn't be subject to it, was it because of their contract?
Keith Hessing said they couldn't afford to be subject to it.
First two triggers went down.
Commissioner Miller said he just couldn't recall why that circumstance developed.
Keith Hessing said it was tied into some jurisdictional allocation.  There were other reasons.  Probably had to do with the fact that they generated into their own load.  A little bit like FMC.
Approved.
8. Lori Mann's December 15, 1994 Decision Memorandum re:  case No. HPN-W-94-1--Jack Lasance Complaint.
Have not heard back from Mr. Lasance.
Commissioner Nelson suggested closing the case and commenting about the complainant being satisfied.
Don Oliason asked about the sensing system.  Said he is checking into the cost.
Commissioner Smith suggested holding Mr. Ford's feet to the fire on this - lets hear back from him on costs.  Ask him to do a report.
9.  Marge Maxwell's December 16, 1994 Decision Memorandum re:  Capitol Water Company 1994-95 tariff to Recover DEQ's Assessment to Fund its Public Drinking Water Program.
10. Marge Maxwell's December 16, 1994 Decision Memorandum re:  Hayden Pines Water Company 1994-95 tariff to Recover DEQ's Assessment to Fund its Public Drinking Water Program.
Commissioner Nelson said he thought the recommendations on both matters were reasonable.
Commissioner Smith said her question was why are we picky with some companies and not others.
Marge Maxwell explained.
Commissioner Miller said he thought .30 cents made more sense than two different rates.
Staff recommendation on both items was approved.
11. Weldon Stutzman's December 16, 1994 Decision Memorandum re:  Case Nos. WWP-E-94-12 and WWP-G-94-6  Tariff Revisions related to demand side management or conservation programs.
This is just a program change.
Weldon Stutzman said they are proposed as tariff items.
Lynn Anderson responded because it is preferred customers it shouldn't be tariff.  Explained the amounts in the tariff.
Commissioner Smith asked if the company cares if it is a tariffed item?
Lynn Anderson said the company thinks it should be tariffed to get a tariff rider.
Commissioner Nelson said he would propose that we adopt it as proposed which gives us consistency with the State of Washington.  It him it is a close enough call, while there may be some questions about it, don't have reason not to put it in there.
Commissioner Miller asked if our approval here was final approval?
Commissioner Nelson explained - Commission has not approved $1.55 per month.
Commissioner Miller said he was uncertain what the staff's ultimate conclusion was.  Were these matters that staff just thought should come to the Commissioner's attention.  
Weldon Stutzman said to bring it to the Commissioner's attention that if you wanted to make changes - you could.
Lynn Anderson said - just brought up the issues.
Commissioner Smith asked - where you proposing that there not be any caps?
Staff position was because there are no caps they are not tariffed items.
Wayne Hart said - we were suggesting additional funding for the pilot programs.
Commissioner Miller asked - how long would this approval be for?
Lynn Anderson responded - 94-96 but thinks 2 years is a long time.
Wayne Hart said he would feel better if there was a time certain on it.
Sunset clauses would ease that a lot.
Commissioner Nelson asked about an ending date?
Weldon Stutzman said all of these proposed by the company do not go beyond '96.
Commissioner Miller said - in general, did think there was something to Bill Eastlake's assessments.
Lynn Anderson said he didn't know what exactly the Washington Commission approved.  Unsure of final outcome.
Commissioner Miller said he was kind of high centered on this.  Don't like cycling back and clearly staff is not enthusiastic about it but know one seems to feel strong enough to say no.
Lynn Anderson said their ramping down does bring them closer to the national level.
Commissioner Miller said he could go either way on the tariff issue.  If staff is concerned, lets accommodate them and see how it goes.
Commissioner Smith said - given that we recently made a point about tariffs and this does bring awareness.
Approve what company proposed.  Note the contribution of the NW Community Action agencies - appreciate their cooperation in low income matter.
12. Terri Carlock's December 16, 1994 Decision Memorandum re:  Midvale Telephone Exchange Inc.'s Request to Borrow up to $3,403,000 from the rural Electrification Administration (REA).  Case No. MID-T-94-2.
Commissioner Smith asked if they were ever going to be able to provide phones at Warm Lake?
Terri Carlock said this is to just lock in the 5% rate.
Commissioner Miller asked - are they getting this in ahead of the state modernization plan?
Terri Carlock said she thought they are.  Explained the improvements.  The new customers in some of the areas were where they are.
Commissioner Miller said he thought it would be good to get this done.
**File loan documents and keep track of it to see that there isn't too much negative cash flow.
Approved.
13. Weldon Stutzman's December 16, 1994 Decision Memorandum re:  Order to Suspend Rules; Federal Legislation Preempting Motor Carrier Regulation; GNR-M-94-4.
Question is:  since some states are requesting stays, should we wait?  
Weldon Stutzman told Commissioners what their alternatives are.
Commissioner Smith said - don't want any confusion among our guys as to whats being enforced and whats not.
Commissioner Nelson said if we don't get a stay on December 27, should send something out suspending those rules.
Commissioner Miller asked about temporarily suspended?  Do we know how long we want them suspended for?
Weldon Stutzman said he thought there needed to be a review of all rules.
Commissioner Miller said he thought that should be stated - how long the temporary is.
Meeting adjourned.
Dated at Boise, Idaho, this 29th day of December, 1994.
Myrna J. Walters
Commission Secretary
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