19950131_1.docx

MINUTES OF DECISION MEETING
January 31, 1995 - 10:30 a.m.
The following were in attendance at this decision meeting - the final decision meeting for Commissioner Joe Miller whose appointment expired and he subsequently resigned:  Marsha H. Smith, Commission President; Joe Miller, Commissioner and Ralph Nelson, Commissioner.  Also in attendance were Ron Lightfoot and John Souba of U S West; Al Fothergill, representing Idaho Citizens Coalition; Conley Ward, Attorney at Law; Fred Logan of GTE, Don Reading, Consultant; Peter Richardson, Attorney at Law and various media personnel.  Present from the staff were:  Don Howell, Lori Mann, Brad Purdy, Weldon Stutzman, Bev Barker, Joe Cusick, Belinda Anderson, Marge Maxwell, Keith Hessing, Jack Taylor, Gary Richardson, Tonya Clark, Terri Carlock, Stephanie Miller, Judy Stokes and Myrna Walters.
Commission President, Marsha H. Smith, called the decision meeting to order.  She proposed that Items 14-16 on the Agenda be considered first.  
14.  Idaho Power Company - IPC-E-94-5 - Rate Case.
Commissioner Smith said - Company filed rate case on June 30, requesting rates effective August 1 and Commission has timely processed that application and is ready to issue its final order today.  Has determined the company is entitled to a rate increase of $17,177,048, which is an approximately 4.2% increase in revenues, overall.  Commission has determined that the appropriate return on equity is 11.9 and that the overall return should be 9.199.  Said change most apparent to the customer is
that there will no longer be $7.50 minimum.  There will be a $2.50 customer charge and energy used will be billed at approximately 5 cents a kilowatt on top of that.  That is the biggest change.
This is an approximate 7.42% increase in residential rates.  Company's cost of service showed that some of the customer classes were below the cost of serving them.  Have made significant steps in this order to realign the rates of the different customer classes.  
Commissioner Nelson said the biggest change in the rates allowed from the company's case is the difference between return on equity. That amounts to more than half of the difference between what we are allowing and what the company requested.  Most of the difference beyond that were changes that staff and intervenors recommended that the company ultimately agreed were appropriate.  Change in cost of equity was the main change.  Other was not that much different.
Commissioner Miller said he had no comment with respect to the order itself other than to thank staff for getting all the fully submitted matters included on the agenda.  He personally appreciated the effort.
Commissioner Smith mentioned that this was Commissioner Miller's last decision meeting so there was a crunch to get orders ready for signature.
No further comment on the Idaho Power Order - it was signed by all three commissioners.
15. Revised Avoided Cost Rates - IPC-E-93-28; PPL-E-93-05/UPL-E-93-07; WWP-E-93-10.
Commissioner Smith said these are three separate cases revising rates to independent power producers.  Commission has made significant change by changing the surrogate used as the avoided project and adopting the proposal of Idaho Power Company to use a least cost planning process for determining rates for projects larger than 1 megawatt.  Rates set by the Commission are only applicable to less than 1 megawatt projects.  There are also major changes in how the avoided costs will be determined and applied in the future.
For the Washington Water Power case, because it was filed and heard so far in advance of the other cases, have asked them to refile should they choose to do so.  We have indications that is what they probably will do.  
Have three separate orders for these three cases.
Commissioner Nelson said he would just like to add to the comments thanking staff for getting these cases ready for Joe's final day at the Commission.
Also want to thank Marsha and Joe for the collegial atmosphere we have had for the past 8 years.  Commissioners often go into these meetings with a different point of view and some amount of time working toward agreement that we can sign.  It has always been done in a professional manner with the attitude that we are going to put that order behind us and go on to the next.  Have appreciated that.
Commissioner Miller thanked Commissioner Nelson for his comments.
Commissioner Miller said he has issued a separate statement that when major changes are made there be careful monitoring of the changes overtime so the Commission can evaluate the effects of the changes and making mid-course changes as necessary.
Commissioner Nelson said this order does represent a significant change in our determination of avoided cost for electric generation.  Hopefully projects will be able to come on line with these costs.  If they can, it will be a benefit to the Idaho ratepayers.  Think we have set a process in motion to examine those costs on a more regular basis and be more current as we go down the road.
16. UPL-E-92-06  Utah Power & Light - Cogen Complaint Rosebud Enterprises vs. UP&L.
Commissioner Smith said the Commission has determined that Rosebud was to get prior rates.  Rates proposed by Rosebud are appropriate under that methodology and Rosebud should be offered those.  
Commissioners had no further comments on this matter.
Commissioners then considered the rest of the agenda before speaking to Item 17.
1.  Mary Friddle's January 20, 1995 Decision Memorandum re:  Wes Olson Trucking, Inc.
Olson's conditional authority was extended for six months.
2.  Regulated Carrier Division Agenda dated january 31, 1995.
Commissioners approved both items on the agenda.
3.  Birdelle Brown's January 18, 1995 Decision Memorandum re:  GTE Advice 95-01 - Message Waiting Indication, Customer Controllable Ringing and a Five-Feature Package, effective February 17, 1995.
Approved the tariff.
4.  Birdelle Brown's January 23, 1995 Decision Memorandum re:  Citizens Advice ID-95-01 to Update the Exchanges Where Zone and Touch-Tone Charges Are No Longer Effective; and
5.  Birdelle Brown's January 27, 1995 Decision Memorandum re:  Citizens Advice ID-95-02 to Include Tariff Rates for the Parma-Wilder EAS effective January 1, 1995.
Commissioner Smith asked what the rate was when you combined them?
Eileen Benner responded in Birdelle Brown's absence.  Gave the zone and touch tone charges.  Said zone charges will be eliminated for those who were paying them.
Touchtone charge - you may see another $2.00 reduction and anyone who didn't have it can have it now.
Items 4 and 5 were then approved.
6.  Lori Mann's January 25, 1995 Decision Memorandum re:  Proposed PTI Business Office Closure in Grandview; Case No. GEM-T-94-1.
Commissioner Smith said further information is that PTI does have toll free number and customers can make an appointment with the area supervisor and that it has payment agencies in Grandview and Richfield.  Question is:  do they get to close the office?
Commissioner Nelson said he was still having a difficult time saying they shouldn't have a business presence in Idaho.  The level is what he is wrestling with.  they are not the smallest in the state.  Don't know if just because someone retires is that the appropriate time to close the office?  Think it is real poor precedent.  General process should be adhered to.  What is the necessary level?
Commissioner Miller said one way to answer that question is to take a consumer-driven approach and look at it from that point of view.  It didn't appear there is strong consumer demand to have this office open.  Don't know about prior deterioration.  Maybe his opinion shouldn't count for much in this decision but on the conditions that are set here, don't object to the closure.  Asked where the toll free number goes?
Lori Mann said Cheney, Washington.
Commissioner Miller suggested holding this matter and getting a fresh view from the new commissioner.
Commissioners Smith and Nelson did not want to hold the matter.
Commissioner Smith said she was inclined to allow them to close the office for some of the same reasons as Commissioner Miler expressed.  You don't know how much the demand has been depressed.  If we haven't had an outpooring of complaints, then would tend to say let the company trying operating in this manner with the understanding that if problems develop, we can tell them they have to have a "live body".
Commissioners Miller and Nelson agreed to that decision and that wording being in the order.
7.  Marge Maxwell's January 25, 1995 Decision Memorandum re:  Evergreen Water Company's Request for Approval to Charge 1% on Past Due Amounts.
After brief discussion on whether or not the customers have gotten notice of this and how long it has been listed on the bills, Commissioners approved the charge.  **Company is located in St. Maries, ID.
8.  Marge Maxwell's January 25, 1995 Decision Memorandum re:  Troy Hoffman Water Company 1994-95 Tariff to Recover DEQ's Assessment to Fund its Public Drinking Water Program.
Approved staff's recommendation.
9.  Rose Schulte's January 25, 1995 Decision Memorandum re:  Packsaddle Development Corporation.
Commissioner Smith asked if opening a docket in this matter, without issuing a summons was okay?  Call it an investigation.
Bev Barker said it needs a case number and action to get response out of this company.
Commissioner Miller said to remember that the first case assigned to him was a small water company and it was his recommendation that this be assigned to Commissioner Hansen.
10. Bev Barker's January 27, 1995 Decision Memorandum re:  Changing Status of UP&L Offices in Mud Lake & Lava Hot Springs & Dispatching Operations in Shelley.
Commissioner Smith commented - apparently the company has already given notice, why do notice of modified procedure?
Bev Barker replied - was just going along with official notification asking for comments.  Have the customers get something from the Commission.  Nothing has invited public comment to the Commission.    
Copy of the actual notice hasn't been received.  Bev has asked for it.
Commissioner Nelson asked if we had received any calls at all on this?
Commissioner Smith said she wondered about opening a case - but perhaps something needs to go out asking for comment.
Commissioner Nelson said - could table it for a week or so and see if there are any problems.
Bev Barker said she looked at the complaint and it wasn't anything that should raise media complaints.
Commissioner Nelson suggested either approving it or hold it until Bev can come up with any adverse consequence.
Commissioner Smith said she would note that the company has advised us and if there are problems, then corrective actions can be taken.
Approved.
11. Syd Lansing and Terri Carlock's January 27, 1995 Decision Memorandum re:  FAS 109 for U S West.
Request from company came in as a letter request.
Decision was a letter from Stephanie Miller approving the request.
12.  Lynn Anderson's January 26, 1995 Decision Memorandum re:  Case No. ALB-T-92-1; Kent Searle's Request for Mobile Interconnection with Albion Telephone Company.
Approved proposed tariff.  Case will then be closed.
13. AT&T's Petition for Intralata Equal Access - GNR-T-94-5.
Commissioner Miller said he would not participate in this decision as the matter will be continuing after he leaves the Commission.
Commissioner Smith reviewed staff recommendation.
Commissioner Nelson said - could open a case and see how U S West Bill moves through the legislature.
Commissioner Smith said she agreed with staff that because we have a case, don't have to open another docket.  Can establish a process that gets us past the session before we take further action.  
Deadlines should be established.  Do notice of application and start discovery process.
17.  GNR-T-94-1  Complaint & Petition for Declaratory Order Against Upper Valley Communications.
Commissioner Miller, Case Chairman for this matter, said the commissioners have deliberated and decided the case but the order isn't yet prepared.  He suggested one approach is that the decision we have reached should be summarized in the minutes and  made clear that I voted for the decision.  If it doesn't get done today, could be indicated on the order that I deliberated but left before the order was signed.  Commissioners Smith and Nelson could sign the order tomorrow or Thursday.
Commissioner Smith said we do need to get into the minutes that Commissioner Miller described what we decided.
Commissioner Miller:  The Commission concluded that it does have jurisdiction to resolve the complaint that initiated the case and found against Upper Valley on its jurisdiction arguments.  Commission also concluded that Upper Valley is not currently purchasing the correct underlying wholesale services; that the retail services it is offering is the functional equivalent or same as MTS service.  As a consequence, Upper Valley’s service is unfair to other purchasers or providers of MTS because it gives Upper Valley an advantage over all other providers that do purchase access services; it is unfair in that it requires the use of U S West plant and facilities without actually compensating for that use.  That is the substance of our decision.  Think the order will provide that as soon as the order has become final after lapse of time for reconsideration, or Commission disposition of reconsideration,  that Upper Valley should then commence purchasing from proper access tariff.
Commissioner Nelson said he thought Commissioner Miller covered it - reached the same decision from a different point of view - Upper Valley was not covering the costs incurred to U S West because of the manner in which it switched and laid traffic back on U S West.  Reached the same conclusion but came at it from that point of view.
Commissioner Smith said - me too, agreeing with Commissioner Miller’s reasons.
Will work to get the order out tomorrow morning.
Commissioner Smith asked that the minutes reflect that the Commission thanks Commissioner Miller for his 8 years of dedicated service and the people of the State of Idaho have been well served.
Meeting was then adjourned.
Dated at Boise, Idaho, this 2nd day of February, 1995.
Myrna J. Walters
Commission Secretary
013195.min