19960513_1.docx

MINUTES OF DECISION MEETING
May 13, 1996 - 1:30 p.m.
In attendance at this time were Commissioners Ralph Nelson, Marsha H. Smith and Dennis Hansen and staff members Don Howell, Scott Woodbury, Weldon Stutzman, Terri Carlock, Ron Law, Stephanie Miller, Madonna Faunce, Jim Long, Bill Eastlake, Eileen Benner, Randy Lobb, Keith Hessing, Joe Cusick, Bev Barker, Birdelle Brown, Lynn Anderson, Rose Schulte, Dave Schunke, Gary Richardson, Kathy Stockton, Judy Stokes, Wayne Hart, Brad Purdy  and Myrna Walters. Also in attendance were Joe Miller, Attorney at Law; Mike McGarth and Skip Worthan of Intermountain Gas Company;  Peter Richardson, Attorney at Law; Larry D. Ripley,  Ric Gale and Greg Said of Idaho Power Company and Jim Wozniak of U S West.  
Items from the May 13, 1996 Agenda were discussed and acted upon as follows.
1. Regulated Carrier Division Agenda dated May 8, 1996.
Commissioner Hansen made a motion that the RCD agenda be approved; seconded by Commissioner Smith and approved unanimously.
2. Birdelle Brown’s April 18, 1996 Decision Memorandum re: GTE Advice 96-05 - Introducing New Call Restriction Service Offerings and Restructuring Billed Number Screening, Effective May 1, 1996 (Held from April 24, 1996 Decision Meeting).
Commissioner Smith commented the matter was much clearer with this follow up memo (May 13, 1996) to the April 18 Decision Memo. She made a motion to approve the filing, Commissioner Hansen seconded the motion; Commissioner Nelson concurred.
3. Jim Long’s May 9, 1996 Decision Memorandum re: GTE Advice 96-07 - Requesting a Text Update in Reference to Foreign Exchange Service Associated with the Local Calling Plan Options.
Commissioner Smith made a motion approving the advice; Commissioner Hansen seconded the motion; Commissioner Nelson concurred.
4. Scott Woodbury’s May 2, 1996 Decision Memorandum re: Case No. INT-G-96-1 - Natural Gas Integrated Resource Plan Modified Procedure--Comments.
Decision was to acknowledge receipt of filing of the 1996 Natural Gas Integrated Resource Plan and to ask staff to work with IGC on the next cycle.
Commissioner Smith said she thought it was a good idea to move the years from 15 to 10. It is more realistic in today’s market.
17. Scott Woodbury’s May 10, 1996 Decision Memorandum re: Case No. INT-G-96-2 - New Tariff--Schedule T-3 Interruptible Distribution Transportation Service, Modification of LV-1, T-1 and T-2 Tariffs, Change to General Service Provisions.
Commissioner Nelson commented he thought that the $30,000 minimum did not include anything for gas, was that correct?
Madonna Faunce responded that was correct. It is just transportation on Intermountain’s system. There is no interstate transportation or gas in that tariff.
Commissioner Nelson said as he understood it, it was more than the minimum.
Madonna responded - the customer would have to take at least 450,000 therms on IGC’s system; . transportation on IGC’s system to make $30,000. The minimum would be one half a million therms. that is her concern.
Commissioner Hansen said he thought 200,000 was the determination of an industrial customer.
Madonna went over the wording.
Commissioner Smith asked - didn’t that just mean taking service under the wrong tariff?
Madonna said it is an optional tariff. All they have done is take the cost of service study, take out of that the cost of gas and the cost of interstate transportation and said that is what the cost of this tariff is. They have just unbundled everything.
Commissioner Hansen asked - if a company used 500,000 therms then in your mind they would qualify as a GS-1 customer? 200,000 therms - they are a transportation customer and they qualify for any transportation tariffs. If they take under 200,000 they are a GS customer and should be charged a GS rate. The $30,000 is absent any..but if you are a transportation customer and make the 200,000, why should you be penalized for not taking 540,000 therms?
Mike McGrath of IGC commented that the customers who have expressed interest in this new tariff are rather large customers.  
Skip Worthan of IGC commented - GS customers already pay the $30,000.
Commissioner Smith said it was her understanding that customer’s viewpoint is they are ready to go and they like it is the way it is. If there are complaints then we should take those up right then.  Right now, haven’t seen any evidence.
Commissioner Hansen said he could go with that.
Commissioner Smith said if it turns out to be a problem we can fix it.
Madonna Faunce suggested changing the minimum to 540,000 therms.
David Schunke said his suggestion would be to strike the therms language since the dollar amount controls.
Commissioner Nelson suggested approve it and revisiting it in a year.
Commissioner said company should look at Dave Schunke’s suggestion. Filing was approved with all the changes company has concurred on.
5. Scott Woodbury’s May 3, 1996 Decision Memorandum re: Case No. USI-W-96-2- United Water Purchase of M&M Water Company.
Approved putting it out on modified procedure - individual notice to the customers.
6. Scott Woodbury’s May 8, 1996 Decision Memorandum re: Case No. IPC-E-96-7 - Request for Exemption from Master-Metering rules--Crossings Corporation.
Commissioner Smith said she would move approval with the staff terms set out in the previous case - first request for exemption from Crossings Corporation.
7. Scott Woodbury’s May 8, 1996 Decision Memorandum re: Case No. SVE-G-95-1. (Certificate Application) Withdrawal of Application.
Withdrawal of the application granted.
8. Scott Woodbury’s May 8, 1996 Decision Memorandum re: Case No. FLS-W-95-1 - Falls Water Company.
Commissioner Smith made a motion for dismissal for failure to prosecute. Commissioners Nelson and Hansen concurred.
9. Bev Barker’s May 10, 1996 Decision Memorandum re: Idaho Power Company Tariff Advice No. 96-03 - Revision to Sch. 95 to Reflect New Franchise Fees.
Approved - tariffs will be stamped “accepted for filing”.
10. Brad Purdy’s May 9, 1996 Decision Memorandum re: Case No. IPC-E-95-11 - Rate Stability and Earnings Cap Compliance Filing.
Commissioner Hansen made a motion to handle it by modified procedure. Commissioners Nelson and Smith agreed.
12. Susan Hamlin and Rose Schulte’s May 9, 1996 Decision Memorandum re: Case No. IPC-E-96-6 - Idaho Power’s Application for Approval of a Special Contract with the Cascade East Subdivision Line Extension Association.
Commissioner Hansen recommended modified procedure. Commissioner Smith asked why it couldn’t just be approved, without modified procedure. Other commissioners concurred in that. Approved.
14. Brad Purdy’s May 10, 1996 Decision Memorandum re: Case No. IPC-E-96-2 - Idaho Power’s Pilot Irrigation Program.
Staff commented they made several suggestions on this.
Commissioner Hansen mentioned that Utah Power had a similar program. Question is: why were we deviating from a plan that was successful, why are we looking at such a division from UPL’s program. He is concerned that in our state that irrigators be on the same level paying schedule. When he read one utility has one proposal and one another, would like to see them get together. that is his concern.   Question to staff is: can’t we bring these together so they are more compatible?
Brad Purdy said he didn’t know why this happened. Asked Wayne Hart about treating customers the same?
Wayne Hart explained UPL’s program was allowing the option to disconnect at no charge so basically both are expanding. They both used to be the same. both are addressing the same issue. It is new enough that they are both experimenting somewhat.
Brad Purdy said if Commissioners would like, staff could take a look at the patterns. It could be done.
Commissioner Nelson asked if there was a timing problem on this?
Larry Ripley replied that the problem the company has is the Commission and the company’s credit policies to the irrigators are different. Were concerned about any retroactive new credit policy.   What the company would like is for the Commission to set it for public hearing. If there are concerns that staff has raised, set it for hearing. What you have is the big company saying I like it and the small irrigator saying I don’t.  
Commissioner Hansen asked Mr. Ripley if UPL’s proposal has alleviated the problem with the small irrigator?  
Larry said he didn’t know - would urge having a public procedure.
Commissioner Smith said she had a couple of comments. Have no problem with $2.50 charge if you remain hooked up. That is the direction the utility industry is headed. Do have a problem taking choices away from customers. Think customers will be entitled to more choices, think a lot of customers who wrote to the Commission had legitimate safety concerns. Think they do have legitimate concerns. Company does have concerns about expense of turning on meters but think the customers should have the choice of reconnecting. Company would be entitled to charge for “immediate service”. Would appreciate the company thinking along those lines. The customers have brought up a lot of good points. They don’t all use energy the same way. May need to divide them into groups. Don’t know whether you need a hearing to receive those comments.
Commissioner Nelson suggested holding the item for a week. Mr. Ripley asked for the Company to have until June 1.
Agreed.
16, Scott Woodbury’s May 10, 1996 Decision Memorandum re: Case Nol IPC-E-96-5.
PCA.
The industrial customers and staff both filed comments. True-up mechanism has been consistent since it was implemented. In this filing they indicated that there should be a change in the true up methodology regarding Idaho kws rather then system-wide. Going back and looking at the transcript it appeared that what the company was proposing was in fact what they were proposing in 1993. The error has had the effect of over collecting. Have shared these numbers. Met with Idaho Power last Friday afternoon. Set up a meeting for this morning. In 1994 they under collected and in 94/95 they over collected. Under that they would be out 1.2 million this coming year. The company has under recovered 2/3 million. If you go another year, the company would collect ½ of that. Basic on staff’s analysis t it feels, it is staff’s position that the company’s proposal should be supported and we do support that. would approve the change in methodology staring next year. The dollar effect of that would be customer would be out 1.2 million this year.  The company would still have 1.2 million that it over recovered.
Commissioner Nelson asked what the return was?
Scott Woodbury said initially they would want to recover ‘95 and it would be offset by 1.2. Explained the numbers - Minus 1.479 provided on the  work papers. Defer implementation until next year that would result in a PCA of -1.36.
Peter Richardson for the Industrial Customers said they met with the company and staff and would support the compromise or making the change in methodology with next rue-up and not make it for 94/95. Negative number is acceptable to the industrial customers.
Commissioner Hansen said he would move acceptance of 1.635. Other commissioners concurred.
11. Bill Eastlake’s May 10, 1996 Decision Memorandum re: Idaho Rural Exchange Carrier (IREC) Special Access Tariff Revision.
Commissioner Smith asked Bill Eastlake what comparable U S WEST rates were?
Companies will probably have to refile individually.
Bill Eastlake explained what the problem was he had with it. This is another guess and would prefer not getting “another guess”.  
Commissioner Smith said 1 and 3 would be fine with her. #1 would be preferable.  
Approved.
13. Birdelle Brown’s May 10, 1996 Decision Memorandum re: GTE Advice 96-06 - To Remove Obsolete Reference from Tariff; Effective May 14, 1996.
Commissioner Smith moved approval - other commissioners concurred.
15. Weldon Stutszman’s May 10, 1996 Decision Memorandum re: Case No. ATT-T-96-1 Processing Application of AT&T Communications For Amendment to Its Certificate of Public Convenience and Necessity.
Commissioner Smith said she would say yes to intervention and yes to putting it out on modified procedure. Commissioners Nelson and Hansen concurred.
Meeting adjourned.
Dated at Boise, Idaho, this 17th day of May, 1996.
Myrna J. Walters
Commission Secretary