19950419_3.docx

MINUTES OF DECISION MEETING
April 19, 1995 - 9:30 a.m.
In attendance at this time were:  Commissioners Ralph Nelson, Marsha H. Smith and Dennis S. Hansen and staff members Scott Woodbury, Tonya Clark, Rick Sterling, Gary Richardson, Randy Lobb, Brad Purdy, Syd Lansing, Treva Pline, Birdelle Brown, Dave Schunke, Keith Hessing, Terri Carlock and Myrna Walters.  Also in attendance were Wayne Booe, Ben Hepler and Dan Brown of United Water Idaho (Boise Water Corporation), Kip Bedard of Micron, Inc., Sharon Ullman, Intervenor in BOI-W-95-1 and John Souba of U S West.
Commission President Ralph Nelson called the meeting to order.
Matters from the March 19, 1995 Agenda attached hereto, were considered as follows.
1.  Regulated Carrier Division Agenda dated April 19, 1995.
Commissioner Smith moved approval.  Other two commissioners agreed.
1A.  Robert Horton's April 17, 1995 Decision Memorandum re:  Case No. UP-RR-95-1, Amalgamated Sugar Company's Railroad Clearance Rule Waiver Request.
Commissioner Smith made motion to approve the waiver request.  Other commissioners concurred.
2.  Brad Purdy's April 13, 1995 Decision Memorandum re:  Case No. WWP-E-93-10:  Washington Water Power Company's Avoided Cost Compliance Filing.
Commissioner Hansen asked that this matter be held until the next decision meeting so he can get more information from staff.
Will be held.
3.  U S West South's Tariff No. 95-02(S) Amended - to Eliminate Universal Service order Codes (USOCS) previously approved 4-7-95.
Approved unanimously.
3A.  Brad Purdy's April 17, 1995 Decision Memorandum re:  Case No. IPC-E-95-2; In the Matter of the Application of Idaho Power company for Authority to Implement the Power Cost Adjustment Rate for Electric Service to Customers in the State of Idaho for the Period May 16, 1995 through May 15, 1996.
Commissioner Nelson said he would suggest it go out on 21 day comment period, modified procedure.
Other commissioners agreed.
3B.  BOISE WATER CASE NO. BOI-W-95-1  Application for approval of agreement to expand facilities in Southeast Boise and to Amend and Revise Certificate No. 143 - Review of filings, comments, etc., re:  Modified Procedure.
Commissioner Nelson said we have received comments in this case.  First need to decide if we have enough information or will need to set it for hearing.
Comments were received from Sharon Ullman and IPUC Staff.
Commissioner Smith said she had a couple of questions of staff.  Was curious because one of the questions of Mrs. Ullman, was tax treatment of the project.  Wanted to ask staff if they had concerns and had looked at that issue and what their recommendation was.
Randy Lobb said staff did look at this.  One third of the tax will be paid by Boise Water.  Staff got a copy of a letter that Boise Water obtained from Price Waterhouse that discussed the tax implications and how they will be treated so staff didn't see any problems associated with that.  Was a different tax treatment than would be 100%.  But said that was considered with the fact that it was a no-interest loan.  It would be a benefit to the company and thus a benefit to the other customers.
Commissioner Smith's other question was:  there was some discussion about how the job was bid or not bid or who was going to do the work or not.  Are those issues we normally get involved in in a project like this and if staff had any concerns about how they procured the work, etc.?
Randy Lobb replied - generally with a commercial, they have the option to hire the contractor of their choice.  Where Boise Water puts up the money, then Boise Water usually decides.  Apparently Micron agreed that Owyhee Construction was acceptable.  Boise Water wanted to use them so it wasn't put out for bid.  Ratepayers will actually pay some of that.  It is a hybrid.  It is not company-financed, or developer financed but with Micron's participation there was some scrutiny of the costs.  We believe that Micron's ability to audit the construction costs would give us some assurance that they weren't out of line.  If they were okay with Micron they are okay with us.  Question of the hook-up fee being $120 or $1200, is a ratepayer issue.  That is to be decided by the Supreme Court.
Difference in hook-up fees would mean less money for other projects - that is the only difference.  Looked at labor provided by Owyhee and it is about $1,000,000.  Difference in bid amount would not be significant.
Commissioner Smith asked if it was our normal practice to look at these in advance or in a rate case?
Randy replied - rate case.  Anything unreasonable would be considered in a rate case.  Didn't see this as approval of prudence.
Commissioner Smith said on staff recommendation, as she understood it, the staff concludes that Micron is bearing the risk that the Supreme Court will act against it but ask that it be reassessed after the Supreme Court Case, why should we need to reaccess if Micron is bearing the cost.
Randy Lobb said we don't.
Commissioner Smith comment if we approved it, we are done.
Randy Lobb said whatever the hook-up fees are will be revisited by Micron.  Any change in the agreement would have to be approved by the Commission, though.
Commissioner Smith asked if anyone knew where the company was regarding water rights?
Dan Brown, Engineer for United Water, said the water rights have been approved by the Department of Water Resources.
Commissioner Smith asked that it be noted in the minutes that she had one call from a well owner in the adjacent area that is very concerned that the new wells will cause some problem with his well and I told him we don't do water rights.  He would have to go to Dept. of Water Resources.
Commissioner Hansen said his questions had been answered.
Commissioner Nelson said his only question of Randy Lobb was:  have you considered anything since filing the comments that would change your mind on the water requirements over the next 5 years if Micron doesn't participate in this project?
Randy Lobb replied this was done by analysis done by the company on what would be required to serve new growth in the area.  Was not aware of anything that would change staff position.  He is comfortable with the analysis.
Commissioner Hansen said based on the information we have received, think we should approve the agreement.
Commissioners Nelson and Smith agreed.  
Commissioner Smith thanked Sharon Ullman for her interest and participation.  Does think, though, that the contract is in the best interest of the ratepayer and it should be approved.
Approved the contract and certificate amendment.
Meeting was then adjourned.
Dated at Boise, Idaho, this 19th day of April, 1995.
Myrna J. Walters
Commission Secretary
041995.min