19970508_1.docx

MINUTES OF DECISION MEETING
May 8, 1997 - 1:30 p.m.
In attendance at the meeting were Commissioners Dennis Hansen, Marsha H. Smith and Ralph Nelson and staff members Brad Purdy, Weldon Stutzman, Stephanie Miller, Birdelle Brown, Kathy Stockton, Ron Law, Tonya Clark, Bill Eastlake, David Scott, Rick Sterling, Joe Cusick, Carolee Hall, Bev Barker, Lynn Anderson and Myrna Walters. Also in attendance were Jim Baggs and Jeanette Bowman of Idaho Power Company; John Souba of U S West;  Conley Ward, Attorney at Law;  Peter Richardson, Attorney at Law; Paul Jauregui, Attorney at Law and Eileen Benner of AT&T.
Commission President Dennis Hansen called the meeting to order.
First on the agenda was consideration of the Minutes of the April 15 and April 23, 1997 Decision Meetings.
Commissioner Smith made a motion to approve the minutes; seconded by Commissioner Nelson; approved unanimously.
1. Regulated Carrier Division Agenda dated May 8, 1997.
Ron Law, RCD Administrator explained that the temporary application on the RCD agenda was for Fischer Farms.
Commissioner Smith made a motion to approve the agenda; Commissioner Nelson seconded it; approved unanimously.
2. Brad Purdy’s May 2, 1997 Decision Memorandum re: Union Pacific Railroad Company’s Proposed Abandonment of the Homedale Branch in Owyhee County, Idaho.
Brad Purdy reviewed the filing; staff has conducted an investigation. What is before the Commission is: (1) do you want a hearing? (2) If not, do you agree with staff that there is no adverse effect and an order will be issued?
Commissioner Hansen asked if there were questions? He went first - said this last legislative session it was an issue and requested change - it did not change. He is in favor of a hearing.
Commissioner Nelson said a couple of legislators didn’t think it was a burden.
Commissioner Smith said she thought this was an exemption, not an abandonment - will there be time for a hearing?
Ron Law responded - there is  a new schedule.
Decision by the Commissioners was to hold a hearing.   Hearing will be held in Marsing.
3. Brad Purdy’s May 2, 1997 Decision Memorandum re: IPC-E-97-1; In the Matter of the Petition of Idaho Power Company for a Declaratory Order Determining the Jurisdiction of the Commission over the Leasing of Fiber Optic and Metallic Conductor Cables.
Brad Purdy reviewed the matter. Said staff recommends that the Commission issue a declaratory order saying the order is limited to the applicability of Title 62 and does not constitute formal approval of rate base treatment for dark fiber services by the Company.
Commissioner Smith asked if staff felt the U S West questions needed to be answered? Is there important information Commission ought to have before they declare one way or the other, before making a decision? Asked Bill Eastlake if he had concerns about this?
Bill Eastlake said he was more concerned with the right-of-way. Thought ACHD might complain but they didn’t. There is only a limited amount of right-of-way. The new providers may be precluded from getting into the right-of-way. There didn’t seem to be any third parties coming in with concrete concerns.
Commissioner Nelson said it would be a concern of his,  if we had had a complaint.
Commissioner Hansen agreed it did come down that the parties want to proceed cautiously but that they also didn’t ask the Commission to deny the request.
Brad Purdy said ACHD asked for wording on local ordinances - they did express concerns.
Commissioner Hansen asked the Commissioners what their pleasure was?
Commissioner Nelson moved approval along the lines of staff recommendation.
Vote was 2 ayes; 1 silent.
4. Brad Purdy’s May 2, 1997 Decision Memorandum re: IPC-E-97-2; In the Matter of the Application of Idaho Power Company for Authority to Discontinue its Design Excellence Award Program.
Brad Purdy reviewed the matter.  Said the software is out there in the design community and the number of business participants has declined. Company noted that just a small number are heated by electricity and it should not be the focus of an electric utility to save natural case. Consequently the company would like to terminate the program. Staff agrees. Staff suggested some notice to the design firms. No comments were filed, no parties openly opposed this.
Commissioner Nelson said he had no questions; Commissioner Smith also did not have questions.
Commissioner Hansen moved that staff recommendation be approved; Commissioner Nelson seconded the motion; passed unanimously.
5. Idaho Power Company’s Application for Approval of a Public Purposes Charge to Fund the Company’s Participation in the Northwest Energy Efficiency Alliance - Case No. IPC-E-96-26.
Brad Purdy reviewed the decision memo in this matter. Filing was put out on modified procedure. There were a significant number of people who responded. Majority were opposed to the company’s application largely on the basis that they didn’t feel a rate increase was necessary for funding. Thought it in some way violates the rate moratorium agreement that doesn’t expire until the year 2,000. Brad set out the issues from the decision memo. Staff supported it as did Idaho Rivers United and Northwest Conservation Act Coalition. Staff did express concerns and there were a number of requests for hearing.
Commissioner Hansen asked for questions.
Commissioner Nelson said he had some unanswered questions which would prevent him from approving the application at this time. Didn’t think the method of payment was fair to all parties, especially the irrigators. Is not entirely satisfied that this program is going to bring the benefits to Idaho we would hope.
Commissioner Smith said she wondered if staff had taken a position on whether or not this was included in the rate moratorium? Asked who alleged that?
Responses was - Rate Fairness Group and Micron - at least 3 or 4 parties.
Commissioner Smith said she thought it would be unfortunate to deny the application at this time. The issue is before the Region and NEEA is one of the recommendations of the steering committee. If the other commissioners feel they couldn’t support it today, would hope that we get more information on it.   Our rejection at this point in time may send the wrong message to the region in the regional review process.
Commissioner Hansen said his feeling would be along the same lines as Commissioner Nelson.  He is concerned about lack of detail on NEEA.  Have asked for information on how it will work and how the funding would benefit Idaho. Until he can feel comfortable that the citizens and ratepayers of Idaho are going to benefit from this type of program, especially where it will affect rates, would also feel at this time that he couldn’t approve it. Also agree with Commissioner Smith that it is part of the NW power plan and based on what has been said, would be in favor of getting additional information (put it on hold and get more information) or holding a public hearing whichever would bring forth the information we the Commission needs. That is where he stands. Seems to be three different opinions, but there is the other issue of a public hearing. Perhaps that could be addressed. How does the Commission feel about a hearing or proceeding in a different manner?
Commissioner Nelson said he thought he was leaning towards a hearing but wondered how it will give the Commissioners the information they are trying to get here. Public isn’t going to have that information. It is going to be up to NEEA, the company, more sophisticated comments, rather than just the public.
Commissioner Smith suggested a prehearing conference and Commission could outline issues to be addressed; rate design needs to be addressed. Appreciate the supplemental filing of the company that did address some of the concerns she initially had. Think that would be a way to start. Could cover the questions there.  
There were no objections to a prehearing conference and working in that manner.
Commissioner Smith asked about the interventions, could they just be granted?
Motion was made, seconded and passed unanimously to grant the requested interventions.
6. Weldon Stutzman’s May 1, 1997 Decision Memorandum re: Case No. USW-T-97-8, Approval of Wireless Interconnection Agreement Between U S West and United States Cellular Mobile Telephone Network.
Weldon reviewed the filing.  
Commissioner Smith moved approval; Commissioner Nelson seconded the motion; Commissioner Hansen concurred. Approved unanimously.
7. Weldon Stutzman’s May 6, 1997 Decision Memorandum re: Application of U S West Communications, Inc. for Approval of an Interconnection Agreement with Commnet Cellular Inc.
Staff recommends modified procedure.
Recommendation approved unanimously by Commissioners.
8. Birdelle Brown’s May 5, 1997 Decision Memorandum re: Case No. USW-T-97-3; In the Matter of the Application of U S West Communications, Inc. Tariff Advice No. 96-10-N to Restructure Local Transport Charges.
Birdelle reviewed the filing. The decision memo is a summary of the comments received. Staff’s review indicated the filing was okay. Explained how U S West came to this. It is staff’s position that US West North was rate of return regulated. Rate of return was set by the Commission.
Commissioner Nelson asked if the rates have changed in 11 years?
Staff recommends waiting for the FCC access reform order. Will also recommend giving U S West an opportunity to file reply comments. Staff doesn’t believe this is the place to resolve these other issues.
Commissioner Smith asked Birdelle about cost element - what kind were they, embedded, forward looking?
Birdelle responded staff was not able to give that question the attention it needs.
Commissioner Smith said she would allow U S West to file reply comment and look at the FCC decision and it will become plain what costs are relevant.
**Matter will be held for those two things.
9. Bill Eastlake’s May 5, 1997 Decision Memorandum re: GTE Tariff Advice No. 97-03 to Implement Revisions to Local Calling Plan (LCP), effective August 9, 1997.
Bill reviewed the memo. Said the tariffs filed appear to conform to the order.  
Commissioner Nelson moved approval; Commissioner Smith seconded; motion carried.
10. Terri Carlock’s May 6, 1997 Decision Memorandum re: Columbine Telephone Company, Inc. and Silver Star Telephone Company financing for Exchange Purchase from U S West, Case No. SIL-T-97-2.
Terri reviewed staff recommendation.  
Commissioner Nelson moved approval of the item; Commissioner Smith seconded the motion; Commissioner Hansen concurred.
Meeting was adjourned.
Dated at Boise, Idaho, this 16th day of May, 1997.
Myrna J. Walters, Commission Secretary