19970303_3.docx

MINUTES OF DECISION MEETING
March 3, 1997 - 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, Susan Hamlin, Randy Lobb, Bob Smith, Rick Sterling, Bill Eastlake, Marge Maxwell, Joe Cusick, Alan Killian, Don Oliason, Bev Barker, Tony Jones, David Scott  and Myrna Walters. Also in attendance were Jeanette Bowman and Larry Ripley of Idaho Power Company; Conley Ward, Attorney at Law and Ron Lightfoot of U S West.
Items from the March 3, 1997 Agenda were discussed acted upon as follows.
1. Regulated Carrier division Agenda dated March 3, 1997.
Commissioner Hansen made a motion to approve the RCD Agenda; Commissioner Smith seconded the motion. Commissioner Nelson had a question. Asked if River Rat Express didn’t already have a permit?
Alan Killian responded that they had sold out and were out of the business for 2 years now they are reapplying for the river portion.
Commissioner Nelson then voted to approve the RCD agenda.
2. Scott Woodbury’s February 19, 1997 Decision Memorandum re: Case No. WWP-G-97-1 WWP 1997 Natural Gas Integrated Resource Plan (IRP).
Commissioners okayed processing the application under modified procedure.
3. Scott Woodbury’s February 28, 1997 Decision Memorandum re: Case No. WWP-E-97-1 More Options for Power Service (MOPS) Pilot Program.
Commissioner Smith asked how the Commission was going to figure out what FERC is going to require in this? FERC took jurisdiction of the DADS tariff. That was her concern in regard to MOPS - how is the FERC issue going to be addressed?
Commissioners okayed the application being processed under modified procedure and staff will speak to this issue.
4. Weldon Stutzman’s February 21, 1997 Decision Memorandum re: Case Nos. USW-T-97-4 and RUR-T-97-1 Joint Petition of U S West and RuralTelephone Company, Amendment to Their Certificates of Public Convenience and Necessity.
Commissioner Smith made a motion to grant the petition. Commissioner Hansen asked if there wasn’t a customer to be grand fathered?
Weldon Stutzman said there was and that has been handled.
Commissioners then granted the petition.
5. Weldon Stutzman’s February 25, 1997 Decision Memorandum re: GTE-T-95-3; Implementation of Additional LCP Routes by GTE.
Commissioner Nelson asked if the proposal was fair for Harrison why isn’t it fair coming the other way?
Bill Eastlake said Kellogg already had a premium option there. Explained. Said the relative cap from Community Plus to Premium is roughly the same. Person already in Premium gets Kellogg for nothing additional.
Commissioner Smith asked if Harrison has Premium now?
Responses was no.
Bill responded - there was not a Premium. In order to add Harrison would have to add Premium.  It is the same relative price - from $16 to $25. (Involves only a very few people).
Commissioner Smith asked what Harrison had currently and what Kellog had.
Matter was held until later in the decision meeting for staff to get answers to Commissioners’ questions.
6. Susan Hamlin/Bob Smith Decision Memorandum dated February 27, 1997 re: Case No. GNR-W-96-2; Application of Rickel Water Co.; Final Order under Modified Procedure.
Commissioner Smith made a motion that the Commission issue a certificate and approve the rates as proposed by staff.
Commissioners Hansen and Nelson concurred.
Commissioner Nelson commented it was a good staff report and he questioned the rates until he read the staff analysis.
7. Marge Maxwell’s February 28, 1997 Decision Memorandum re: Hayden Pines Water Company’s Revised 1996-97 Tariff to Recover DEQ’s Assessment to Fund its Public Drinking Water Program.
Commissioner Hansen made a motion to approve the filing; Commissioners Smith and Nelson concurred. Marge asked if the removal of the sunset clause, as recommended by staff, was approved. Commissioners indicated that was what they approved - staff recommendation.
8. Joe Cusick’s February 28, 1997 Decision Memorandum re: Petition for EAS from Malad City to Rexburg.
Decision was to approve staff recommendation - assign it a case number and place it in the que.
9. Don Howell/Joe Cusick February 28, 1997 Decision Memorandum re: Request from Silver Star Telephone Company for Approval of a Special Services Contract.
Commissioner Nelson asked if this was an emergency - why the 14 day comment period rather than 21?
Don Howell responded - only because the company requested it in 30 days.
Commissioner Nelson wondered if staff shouldn’t be given 21 days to respond.
Commissioner Smith said staff has indicated 14 days was adequate.
Decision was 14 day comment period - Modified Procedure.
10. Don Oliason’s February 28, 1997 Decision Memorandum re: WWP’s Tariff Advice relating to the closing of a residential account during the winter to avoid paying the monthly minimum.
Commissioner Hansen asked what the minimum charge was?
Don responded - $8.50 to keep the “juice” on.
Commissioner Hansen asked what the major issues are in the case?
Don Oliason said - whether or not there should be a higher reconnect fee or have the customer pay the minimum at the time the account is closed. Said there appeared to be some sentiment both ways. Company asked for an April 1 effective date.
Staff had recommended a 30 day suspension - Commissioner Smith suggested 90 days just in case it takes longer than 30 days.  
Approved suspension for 90 days - will send the tariff out on Modified Procedure for public/staff comment.
11. U S West Advice 97-03-S Introducing new Centrex 21 Package.
Commissioner Smith made a motion to approved the filing; Commissioner Hansen seconded the motion; Commissioner Nelson concurred.
12. Susan Hamlin’s February 28, 1997 Decision Memorandum re: Jerry Betchan’s Letter Requesting Reconsideration in Idaho Power’s Line Extension Case; Idaho Power’s Response and Cross-Petition; Case No. IPC-E-95-18.
Commissioner Nelson commented on Mr. Betchan’s request for 10 years. Said he had a certain amount of sympathy for people who bought undeveloped lots...when we thought 10 years in those few instances was in the nature of a public service to those customers who had been unfortunate enough to buy years ago and now want electricity.
Commissioner Smith asked what the deadline was to act on the petitions for reconsideration?
Susan said for Mr. Betchan it is March 18, longer for American Heritage.
Commissioner Smith said she was confused as to what is under dispute..under staff interpretation you are going to require different treatment for different people...?
Rick Sterling replied - the interpretation was that it was for “future” subdivisions. Whatever dates you  are going to choose, those are treated differently. Prior to certain date, would follow under the old rule.
Commissioner Nelson said there aren’t any subdivisions being platted right now, are there?
Rick Sterling said there is some question in some counties that it may still be possible.
Commissioner Smith asked what was wrong with having this apply to everyone?
Rick Sterling said Mr. Betchan is not in a subdivision and because of that he thinks if he were in a subdivision, he would get 10 years, he doesn’t think that is fair because he didn’t happen to be in a subdivision.
Commissioner Smith said she would have the tariff language apply to every subdivision.
Asked what the dispute was between staff and Idaho Power?
Larry Ripley of Idaho Power Company replied - the controversy is Idaho Power Company read the order as saying - existing platted and undeveloped subdivisions prior to January 1, 1997 would have the 10-year rule applied to it. Idaho Power Company would propose a  January 1, 1997 cut-off date so that future subdivisions would not be platted and the developer encouraged not to subdivide in order to get refunds. Thought Commission was trying to cure the old problem. Spoke to the already platted but undeveloped...prior to January 1, 1997 but if the developer developed one after that Idaho Power would say no, you were not entitled.
Commissioner Smith said - on the theory that they would not install electricity..you would be encouraging the developer to install because he can get a 10-year refund. Agree with staff that we do not know the current zoning laws today or what might be 2 months from now. Don’t know if this is a grandfather problem or one for the future. Asked about the record on this?
Rick Sterling said he thought there was information in the record.
Commissioner Smith said she thought what was required was clarification of the order. Can do it either by granting or denying rehearing but not require any further filings.
On issue of 5 versus 10, think it needs clarification.
Commissioner Nelson said he would deny the requests for rehearing and clarify the order.
Commissioner Hansen agreed.
**Agree on the procedure.
Discussion went back to Item 5 - Implementation of Additional LCP Routes by GTE.
Bill Eastlake was prepared to say what Kellogg and Harrison have available now.
Kellogg: Current has its most expensive choice as Community Plus - Mullan and Wallace, addition to Kellogg/Pinehurst.
Harrison: Has available Premium (costs twice as much) - St. Maries, Coeur d’Alene, Wallace and Post Falls. Kellogg would be added to that list or Premium with no change in price ($25.92)
For Kellogg: With the addition of Harrison which is only 900 or 1,000 lines, would require that they add a 4th premium option and go from $12.75 to $25.92. The company’s proposal is to add to the Premium. It went into the Community Plus in Kellogg. Rate change went from $12.75 to $16.20. If you want to add Harrison you have to go to Premium and pay $25.92.
Commissioner Smith asked why Coeur d’Alene was added to Community Plus, because it was included in their band? Said she was trying to figure out how they got Coeur d’Alene into Community Plus.
Commissioner Nelson said he liked staff suggestion.
Commissioner Smith asked how distressed the company would be if the Commission approved staff change?
Bill said of course their preferred option would be the way it was before Kellogg/Pinehurst was added on. But think it is within the realm of different.  
Commissioner Smith suggested trying just this once to be asymmetrical.
Question was asked: Why do the Community Rates rise? Thought Community Calling area was the same.   The Community Plan didn’t get bigger.
Response was they are trying to bring the Community Rate the same in similar communities.
Commissioners approved plan, as adjusted by staff.
13. Susan Hamlin’s February 27, 1997 Decision Memorandum re: Staff’s Motion to Consolidate EAS Cases GNR-T-93-7, GNR-T-93-11 and USW-T-97-1/CTC-T-97-1.
Only the GNR cases will be consolidated.
14. Terri Carlock’s February 28, 1997 Decision Memorandum re: Pacificorp Authority to Issue and Sell or Exchange Up to $135 Million Subordinated Debt - Case No. PAC-E-97-2.
Approved.
15. Brad Purdy’s February 26, 1997 Decision Memorandum re: Case No. IPC-E-95-15; In the Matter of the Application of Idaho Power Company for an Order Revising the Rates, Terms and Conditions Under Which Idaho Power Purchases Non-Firm Energy From Qualifying Facilities.
Commissioner Nelson commented he thought one of the main reasons for making the changes in this tariff was that we had nobody requesting to get on and it wasn’t being used, so we granted company petition to change it. Don’t see in Aurora’s petition that there appears that there is anyone ready to hook up on Schedule 86. He would deny the petition.
Commissioner Smith said the only reason the Commission wanted it at 1 and 7 was because of demand metering. Company said if they got a request they could figure out a schedule on an individual basis. Would look at the size of the facility being put in and work it out.
Because it wasn’t in the tariff, wonder if anyone would go the step to negotiate with the company.
Commissioner Hansen said he wasn’t convinced by Aurora. Didn’t think they brought any facts or conclusions that would change his mind. Would not grant reconsideration.
Commissioner Nelson said he had confidence if someone wants to put in for a project and can’t agree, that they can complaint to the Commission.
Petition was denied - two to one - Commissioners Nelson and Hansen voting for denial.
Meeting was adjourned.
Dated at Boise, Idaho, this 4th day of March, 1997.
Myrna J. Walters, Commission Secretary