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MINUTES OF DECISION MEETING
June 26, 1995 - 1:30 p.m.
In attendance at this time were Commissioners Ralph Nelson, Marsha H. Smith and Dennis Hansen and staff members Tonya Clark, Joe Cusick, Weldon Stutzman, Don Howell, Syd Lansing, Keith Hessing, Don Oliason, Rose Schulte, Terri Carlock, Stephanie Miller and Myrna Walters. Also in attendance were: Jim Wozniak of U S West and Mike McGrath of Intermountain Gas Company.
Items from the June 26, 1995 Decision Meeting Agenda were discussed and acted upon as follows.
1. Regulated Carrier Division Agenda dated June 26, 1995.
Approved.
2. Don Howell's June 23, 1995 Decision Memorandum re: Formal Complaint against Union Pacific concerning the Montpelier and Soda Springs Freight Agencies, Case No. UP-RR-94-4.
Commissioner Hansen had brought his Soda Springs phone book. Read from the Movers/Trucking listings. Wondered why the railroad couldn't do the same thing, by adding their ad to the yellow pages under railroad transportation. Still believe that in that are they need to be able to find the number of the railroad - in the white and yellow pages.
Commissioner Nelson said we have already ordered them to put the number in the local directory, What do we do next? Should be issue an order to show cause? Is that the next step?
Don Howell said in February's meeting, commissioner said to do it by consent agreement. Could not satisfactorily enter into a consent agreement with the railroad. Was a difference of opinion on the amount of the sanction.
**Gary Richardson and Eileen Benner were in attendance at this time.
Commissioner Smith asked how much staff was holding out for?
Don Howell replied - staff was at $4,000.
Commissioner Smith said personally she would take the $500 the railroad offered and go for it. As to the Montpelier question, commented - that is not an issue because there is an agent there.
Don Howell said that is what the railroad's answer was.
Commissioner Smith asked if there was anything that says not. Telephone directory issue is - we ordered them to put it in the book and they didn't. Now do we want to go for sanctions? Railroad is now giving directory assistance but it can't be in the book until next January.
Commissioner Nelson asked if they had taken any steps to get it into the book?
Commissioner Hansen commented he didn't think the average "joe" would think to get the number from directory assistance. Was under the impression that the staff was going to get with the railroad to see if they could get a commitment that the railroad would get a listing in the '96 directory. Don't have a problem with that - if it isn't in the '96 directory, it is a whole different ballgame.
Don Howell said once their deficiency had come to their attention, then it was in directory assistance.
Commissioner Smith said it seemed to her that we have two choices. We could hold this until we see if it is in the January phone book. Then could also send staff back to get a consent agreement and some cash with some indication that something less than $4,000 would be adequate.
Commissioner Nelson said maybe we could issue a show cause order as to why they shouldn't be fined if it isn't in the '96 directory. That makes the issue go away if it is in the '96 directory. Want to hold off until staff and the company talk further?
Commissioner Smith said she wants them to ante something up.
**This matter will be held for one month.
Don Howell asked the commissioners what an agreeable amount was?
**Commissioners will be polled later.
3. Birdelle Brown's June 20, 1995 Decision Memorandum re: GTE Tariff Advice 95-08 to Introduce the 500 Customer Identification Function to be effective July 12, 1995.
Commissioner Smith moved approval. Other two commissioners concurred.
4. Bev Barker's June 21, 1995 Decision Memorandum re: United Water Plan to Implement Debit Payment Option.
Commissioner Hansen asked why the Company brought this to the Commission if we don't have jurisdiction over it?
Commissioner Nelson explained - if Commissioners did have a problem with it, could get involved.
5. Bev Barker's June 22, 1995 Decision Memorandum re: Idaho Power Tariff Advice No. 95-03 Implementing City Franchise Fees.
Commissioner Nelson said he didn't see a problem with this, with the staff proposed change.
Approved by all commissioners.
6. Weldon Stutzman's June 22, 1995 Decision Memorandum re: Case No. WSM-W-95-2; Warm Springs' Application to Revise and Increase Rates Charged for Water Service.
Commissioner Nelson explained - we are dealing today with Case No. 95-2 which was the larger increase asked from the applications - asked for the $150,000 upgrade and does not deal with the improvement of Well No. 2 and use of Well #3.
Said Commission approved last fall, subject to conditions, a $150,000 project to upgrade water and sewer in conjunction
with the city. They spend $154,000. Staff recommends $14,000 in AFUDC. There were also $11,000 worth of fire hydrants.
Terri Carlock said it was not part of the $150,000.
Don Oliason said in the last rate case the hydrants were identified but didn't deal with it being in rate base. Before this project there were only 1 or 2 fire hydrants.
Commissioner Hansen asked if they had enough fire hydrants, according to code?
Don Oliason replied - with rebuild, they probably are. Fire District is vague on what they require.
Commissioner Smith asked if the water company participated in the rebuild project with the City and the Ada County Highway District?
Don Oliason said the company did partly. Company alleges that it wanted to start earlier than the city so the company pulled back a portion of the contract and hired the contractor for the same price and got it started.
Commissioner Smith asked if there were any additional costs because of that?
Don Oliason said none that he knew of.
Madonna Faunce explained - $113,000 was submitted. As of today they have come in with $14,000 more.
Commissioner Smith asked - did the water company incur more expenses since they did it themselves to start with?
Terri Carlock explained what the $4,000 was - that $4,000 was not included in staff's number.
Commissioner Nelson said - lets talk about numbers we have here.
Commissioner smith said he is saying you made a mistake when you threw out this $4,000?
Commissioner Nelson said what he thought he heard staff saying is $154,000 that he incurred is as cheap as if he had cooperated with the city.
Don Oliason said in his opinion his pulling part of the project did not increase the cost of the project.
Commissioner Nelson asked - you are recommending today that we approve $154,000?
Don Oliason said that is what staff is recommending.
Commissioner Smith asked if the Neighborhood Association or those who commented request a hearing?
Weldon Stutzman said they did not.
Commissioner Hansen said he had questions as to why fire hydrants cost should be included in this?
Terri Carlock responded. Said the customers were concerned about fire protection. Whenever we put them in they will not produce revenue from the customers. They are not revenue causing. At some point in time they would be included in rates.
Commissioner Nelson said he would go ahead and approve these three items - staff proposal. There are some other expenses that should not be considered today. They should be considered in the other case that is pending. We can decide those later.
Don Oliason asked if the commissioners were approving the rate increase from $1.07 to $1.475 - $1.47 or $1.48.
Commissioner Nelson recommended going to $l.48.
Commissioner smith asked if there was any way to explain to people that this isn't like a mortage, that it will eventually go off?
Randy Lobb said it would be 50 years.
Commissioner Smith asked - can't we explain they are paying more in a longer time. Couldn't we say we made sure there weren't extra expenses with Mr. Wise's decision to pull back part of the project?
7. Scott Woodbury's June 23, 1995 Decision Memorandum re: Case No. INT-G-93-3. Intermountain Gas Application - PGA rate adjustment.
Madonna Faunce responded to question regarding "hedging activities". Contracts are pegged to the FERC for Northwest Pipeline. Therefore if they don't have a fixed contract to a "hedge", this would float up and down. We would like to see what would have happened absent the "hedging".
Mike McGarth of Intermountain Gas Company said he thought a methodology could be developed and regular recordkeeping can be effected.
Commissioner Smith said her concern with this is, staff wants to determine what is reasonable. It is not a legitimate goal to second guess every transaction. Will need to have a long period of time to say they did all right or they did not. It might be a little late to say that.
Madonna Faunce said staff just wanted to see if we couldn't verify that the hedging is okay and look at it on a going-forward basis, not backward. Use it going-forward to say hedging is or is not in the ratepayers best interest - no second-guessing.
**cancel LV-1 tariff.
Commissioner Nelson asked - should be approve this as submitted?
Commissioner Smith said she would so move.
Approved.
8. Scott Woodbury's June 23, 1995 Decision Memorandum re: IPC-E-95-4 Further Extension of Interim Agreement - Micron.
Commissioner Smith said she would move we approve the extension.
Scott Woodbury spoke to Schedule 26 - said Idaho Power did not ask in its application for amendment of the tariff. They actually preferred no amendment. Said staff contends that despite the preference of the parties to not file a tariff, just a contract, that it is reasonable that the Commission require a tariff amendment. What we are asking is an additional line showing the over 40,000 kw rate. It is reasonable to have a tariff schedule that indicates the total services, arrangement between the parties and it seems confusing to have a tariff that is not consistent with the agreement.
Commissioner Smith asked why the parties didn't want a tariff?
Scott Woodbury said Ripley indicated that Micron did not want this included in a tariff because once it is in there they might have difficulty removing it at a later date.
Commissioner Nelson asked - wouldn't they have an agreement that they won't use more than 40,000?
Keith Hessing said with this extension they would be able to use more. They don't believe they will, though.
Commissioner Nelson asked what the charge would be?
Keith Hessing explained - said there is quite an incentive to not exceed the 40,000. See no reason why they shouldn't file an updated Schedule 26 that includes that language.
Commissioner Smith said she agreed with staff regarding filing a new tariff. Tell Micron the tariff will coincide with the agreement.
Approved.
9. Annual Revision of Variable Rate - Avoided Cost - Case Nos. WWP-E-95-3; IPC-E-95-7; UPL-E-95-2.
Scott Woodbury explained the revisions - 1. Colstrip approved rates and approve changes July 1.
So moved.
Scott Woodbury said as to the most recent methodology using Sumas natural gas price, think notice should be required at a minimum because the parties to the other cases were not provided with notice by the company of the proposed change and additionally this is the first time we are changing it under this methodology. It seems reasonable to put it out for comment. said all companies have responded to staff's proposals. Two utilities acknowledged that there was some tweaking to the methodology needed.
Commissioner Smith suggested putting it out on modified but also ask for comment on the July 1 effective date.
Okayed.
10. USW Advice No. 95-03-S Unbundling of Hunting Charge for multi-line customers, introduce local operator svc. charges plus mi. changes.
Commissioner Smith said she would move approval of the changes.
Commissioner Nelson asked what happens to revenue sharing if we change Title 62?
Eileen Benner said if the formula years are affected but they will either revise baseline Title 61 or work it out so there will not be a negative effect on customers.
Commissioner Nelson said he would approve it then.
11. Replacement or Modification of U S West Revenue Sharing Plan - USW-S-95-4.
Commissioner Smith said it was not acceptable to her to be at the same point today as September. Think we need to accept a schedule and go forward but doesn't like staff's hearing dates.
Commissioner Nelson said he thought it would be a good idea to set dates now, around the 5th & 6th of October.
Response to question 1 was yes, continue to pursue further negotiations and set pre-filed and hearing dates.
Meeting adjourned.
Dated at Boise, Idaho, this 30th day of June, 1995.
Myrna J. Walters
Commission Secretary
062695.min