19950811_1.docx

MINUTES OF DECISION MEETING
August 11, 1995 - 11:00 a.m.
In attendance at this time were Commissioners Ralph Nelson, Marsha H. Smith and Dennis Hansen.  also in attendance were staff members Don Howell, Scott Woodbury, Weldon Stutzman, Don Oliason, Tonya Clark, Ron Law, Eileen Benner, Lynn Anderson, Syd Lansing, Kathy Stockton, Birdelle Brown, Terri Carlock, Rick Sterling, Brad Purdy, Stephanie Miller, Joe Cusick and Myrna Walters.  
Commission President Ralph Nelson opened the decision meeting at 11:15 a.m.
Items from the August 11, 1995 Decision Meeting Agenda were discussed and acted upon as follows.
1.  Regulated Carrier Division Agenda dated August 11, 1995.
Commissioner Hansen made a motion to approve Item 1.  Other commissioners concurred.
2.  UP and Commission Staff Joint Motion to Accept Consent Agreement, Case No. UP-RR-94-4.
Commissioner Nelson said he liked Items 2 and 3 of the Commission Decision portion of the Decision Memo.
Don Howell commented that as soon as the Commission gets the check (in accordance with the Consent Agreement) the case could be closed, if the Commissioners so agreed.
Decision was to close the case, when the check is received.
4.  Birdelle Brown's July 25, 1995 Decision Memorandum re:  Citizens Utilities Advice ID-95-04 Eliminating Rural Zone Charges and Touchtone Services effective October 1, 1995.
Commissioner Smith made motion to approve the advice.
Other commissioners concurred.
5.  Birdelle Brown's August 1, 1995 Decision Memorandum re:  PTI dba Gem State Utilities Advice 95-1 to include provisions for late payment penalties effective September 1, 1995.
Advice was approved.
6.  Birdelle Brown's August 8, 1995 Decision Memorandum re:  EAS between Anatone, Washington (TDS) Telecom), and Lewiston/Clarkston (US West).
Commissioner Smith commented she believed staff has made a good recommendation, that it should be approved, contingent upon Washington's approval.
Birdelle Brown said she didn't believe it ever came to a decision meeting (in Idaho) prior to today.  
Commissioner Nelson said he thought it was much more important to Washington people.  If they approve it, we will also.
7.  Syd Lansing's July 31, 1995 Decision Memorandum re:  Century Telephone Depreciation Request.
Commissioner Nelson said he liked the recommendation that we authorize booking of it with the admonition that we would take a hard look at it in a rate case.  Would tell them to do it and we will take a look at it when we have to.
Commissioner Smith said as long as it isn't raising rates now, would approve it.  Would recommend that Stephanie Miller write to the company, rather than the Commission issuing an order on this.
So approved by all commissioners.
8.  Don Howell's August 9, 1995 Decision Memorandum re:  Formal Petition to reopen Troy business office, Case No. TRO-T-95-1.
Was discussion of the matter.  Commissioner Nelson suggested modified procedure.
Don Howell commented this was treated as an informal petition and was brought to the Commission.  Explained the customers' position.  They have now asked for it to go formal.
Commissioner Hansen made a motion that it go out modified procedure.
Other Commissioners concurred.
9.  Scott Woodbury's August 3, 1995 Decision Memorandum re:  Annual Revision of Variable Rate Avoided Cost-Sumas  Case Nos. WWP-E-95-3, IPC-E-95-7, UPL-E-95-1.
Commissioner Smith made a motion that the annual revised and updated calculated for the gas (Sumas) related adjustable portion of avoided cost rates be approved effective July 1, 1995.
Other commissioners concurred.
10. Scott Woodbury's August 8, 1995 Decision Memorandum re:  Case No. IPC-E-95-10  Firm Energy Sales Agreement  Vaagen Bros. Lumber, Inc.
Scott Woodbury commented there are some interesting terms.  There is some question which would be variable under these conditions.  Scott explained the contract term, explained they wanted to renew with WWP.l  There was a complaint filed.  WWP's position was that this was a Washington-based project and if they wanted to sell to WWP then they should participate in the Wash. bidding process.
Commissioner Nelson asked what does the Commission want to do?
Scott Woodbury said the agreement is fine as far as the pricing is concerned and that is our oversight function.  Think the Idaho Power customers are rather indifferent to it.  There is that regulatory-out language.  It gives Vaagen Bros. the opportunity to use it as retail wheeling becomes available in Washington and Idaho.
Commissioner Nelson asked if staff was satisfied that they are using avoided cost methodology?
Scott replied - yes.
Commissioner Smith said she would approved the contract.  Commissioners Nelson and Hansen concurred.
11. Scott Woodbury's August 8, 1995 Decision Memorandum re:  Case No. HPN-W-94-1 (Revisited) Homeowner petition July 28, 1995  Hillside Water System/Hayden Pines Water Company.
Scott Woodbury said the company has come up with a schedule to put in the booster pump.  It appears the customer initiating the contact is satisfied with the schedule.  Would suggest that the Commission's attorney send a letter to the company accepting their schedule.  Staff should continue to monitor the complaints and bring it back to the Commission if the schedule is not complied with or a problem develops.
Commissioner Nelson inquired as to what kind of assurance the Commission got that the pump would be installed last winter?
Don Oliason responded.  Said when he did the investigation of the last summer's problem, met with Bud Ford and asked what could be done to improve service.  Indicated he was going to install a bigger booster station.  Said he put that in his report to the commission.  It was going to be done that winter.  It didn't get done.  Think now the Commission should take notice of the fact that he was going to do that.  Suggested there is one thing the Commission could do that would be helpful.  Could put a moratorium on new service connections in the area DEQ is concerned with, and leave it on until DEQ is satisfied that they have complied.  DEQ has already put their moratorium on.
Commissioner Nelson said we might say we know DEQ has put a moratorium in place.
Commissioner Smith said - tell them we are aware of their time schedule and say we won't take action if they comply with DEQ requirements.  Do not also put on a PUC moratorium.
Scott Woodbury said he would respond to Mr. Ford with a letter, setting out the Commission's decision today.
12. Scott Woodbury's August 9, 1995 Decision Memorandum re:  Case No. CAP-W-95-1  Capitol Water Corporation Application for Rate Increase (Permanent and Interim).
Scott Woodbury said he has spoken to the company and their attorney about staff's proposed schedule.  Would agree with the company making an amended filing by next Friday.  Would suggest the interim request go out on modified procedure.  
Commissioners questioned interim going out on modified procedure, standard for interim rates is an emergency need.
Scott Woodbury indicated Capitol Water will be held to that standard - it will be required before the rates change.  Explained why he had recommended modified procedure.
Commissioner Nelson said one of his concerns is that putting it out on modified doesn't give the customers notice.
Commissioner Smith asked why not prefiled and hearing?
Scott Woodbury said it would appear that the Commission's calendar is rather full.  Appears November 2-3 or perhaps 6-7 would be the earliest date for rate hearing.
Commissioner Smith said she did not want to make it difficult for Capitol Water but didn't want interim rate relief granted on modified procedure.
Commissioner Nelson said he would think we could find sometime in that period where we could schedule a couple of hours for a hearing.  Notice it up and see if the public comes in.
**Scott will come up with a hearing date and time.
Commissioner Smith commented she would feel more comfortable if we had a hearing.
Decision was:  hold hearing on interim, as soon as possible.
13. Brad Purdy's August 8, 1995 Decision Memorandum re:  Adjustments to Avoided Cost Model.
Commissioner Nelson said he was concerned that he didn't want this to be a change in the avoided cost methodology or the variables.
Rick Sterling commented it is not a change in any of the variables.  We have discussed these changes with the utilities and they agree that in the course of changing to a different SA, the model has been tinkered with a lot.  Have thrown a lot of things in there that it wasn't set up initially.  Discovered a lot of little things that need to be tuned up in the model.  Most of the utilities are aware of those things.  Don't think that they have objections.  Technically think we are correct if we make the change, weren't technically correct before.  Each of the utilities has their own version of the model.  It is in the matching process a lot of these things showed up.  It is more of a housekeeping matter.
Commissioner Hansen asked - if it is minor changes, if you open it up on modified, can you just keep it at minor points through modified procedure?
Commissioner Nelson suggested defining the parameters.
Brad Purdy said information would be attached to the modified, making it clear.
Don Howell suggested convening a workshop.
Commissioner Smith said maybe what is needed is to invite the other parties and have a workshop before notice is sent out.  Asked Rick Sterling what he thought of that?
Rick said he thought if a workshop was conducted on what was sent them, they would understand the changes and didn't think there would many adjustments.  They would have to have that information before they commented.
Commissioner Nelson asked if it has been shared with independent producers?
Rick Sterling said no.  All of the changes proposed increase the rates - independents would probably be happy with those.
Commissioner Smith said her concern is it will make the process easier for the Commissioners, if prior to the process, there was a meeting to come and see the "proposal".  Mail it out, then put it out on modified.
**Decision was to made the proposal available and conduct a workshop for all those concerned.
3.  Weldon Stutzman's July 18, 1995 Decision Memorandum re:  Case No. GTE-T-95-2  Application of GTE to extend its local calling plan to its exchanges in Idaho.  (Held from 7-20-95 Decision Meeting).
Commissioner Hansen said he didn't know how we can do this by modified procedure.  Feel the public input is important on this.
Weldon Stutzman said there are two things going on.
(1)  Implemention and staff's review and then company's review of staff.  
(2)  Then company wants to extend it.
Commissioner Nelson asked - wasn't that the purpose of the trial period, to correct the problems in the current plan, if problems were found, before the plan was expanded?
Commissioner Smith commented there are so many people up there who have been waiting for this.  For us to then take another year to iron out these problems, said she was almost to the point of saying extend it and then take our time to fix it for everyone.
Commissioner Nelson asked about St. Maries and Harrison?
Commissioner Smith explained the differences in calling areas.
Lynn Anderson said the problem is in letting the company implement the change, there are unacceptable rates and if the Commission tinkers with numbers, GTE has indicated they will withdraw the filing.  Thought new should be rolled out at the same rates as existing.
Commissioner Smith suggested going back to the company and saying we want it rolled back to current rates and then we will look at it.
Weldon Stutzman said what they have said is if we don't accept as is and put it out on modified, it will be withdrawn.
**Commissioner Smith suggested putting in the notice, letting them know what the Commission has proposed.
Notice will go out - see what comments are made.
Company is to be contacted regarding changing toll co-ordinates.
Meeting was adjourned.
Dated at Boise, Idaho, this 18th day of August, 1995.
Myrna J. Walters
Commission Secretary
950811.min