19970527_2.docx

MINUTES OF DECISION MEETING
May 27, 1997 - 1:30 p.m.
In attendance were Commissioners Dennis Hansen, Marsha H. Smith and Ralph Nelson and staff members Don Howell, Scott Woodbury, Alan Killian, Stephanie Miller, Weldon Stutzman, Carolee Hall, Birdelle Brown, Wayne Hart, Keith Hessing, Tonya Clark, Joe Cusick, Terri Carlock, David Scott and Myrna Walters. Also in attendance were Skip Worthan and Mike McGrath of Intermountain Gas Company; John Souba of U S West and Conley Ward, Attorney at Law.
Commissioner Hansen called the meeting to order.
Items from the Published May 27, 1997 Agenda were discussed and acted upon as follows.
1. Approval of Minutes from Previous Meetings - May 8, May 14, and May 17, 1997.
Commissioners had previously reviewed the minutes and the corrections made. Therefore, Commissioner Smith made a motion to approve the minutes; motion seconded by Commissioner Nelson; carried unanimously
2. Regulated Carrier Division Agenda dated May 27, 1997 - Application for temporary authority - Valley Trucking - Case No. M-8306-1.
Commissioners unanimously approved the application.
3. Petition of The Washington Water Power Company for Approval of Electric Purchase Agreement with Rayonier, Case No. WWP-E-97-4 - held from May 19, 1997 Decision Meeting - Company now requests withdrawal of the Petition.
Commissioners unanimously approved request for withdrawal.
4. Brad Purdy’s May 22, 1997 Decision Memorandum re: Case No. GNR-T-97-2. Application of Max-Tel Communications for a Certificate of Public Convenience and Necessity to Operate as a Reseller of Telecommunications Services.
Wayne Hart reviewed the matter, in Brad Purdy’s absence. Indicated staff didn’t feel they had the criteria to say no to the application, so they recommended approval.
Commissioner Hansen questioned the fact that MaxTel had not filed a verified financial statement.
Commissioner Nelson said because they don’t have a verified financial statement, he wondered about customers being left without service after paying up-front charges. Asked if the
Commission has authority to require posting of a bond? Said he was hesitant to approve it as submitted.
Commissioner Smith indicated she would have thought the Commission had adequate authority if was found necessary to have them post bond.
Motion was made, seconded and unanimously approved to hold the matter until the next decision meeting.
5. Weldon Stutzman’s May 22, 1997 Decision Memorandum re: Case Nos. USW-T-97-12/SPR-T-97-1 Motion to Withdraw Petition for Arbitration by Sprint Communications Company.
Weldon Stutzman briefly reviewed the original filing and the motion by Sprint to withdraw their petition for arbitration.
Commissioners unanimously approved granting the motion.
6. Birdelle Brown’s May 23, 1997 Decision Memorandum re: U S West Advice 97-04-N (And 97-12-SC)to Grandfather Local Area Data Service (LADS) Effective June 1.
Birdelle reviewed the filing.
Commissioner Nelson commented that if there is a five year grandfathering period, everyone using the system is pretty well protected.
Birdelle commented that the person complaining is an exchange carrier.
This is the filing for US West North only.  
Commissioner Nelson said he would move approval of the filing; Commissioner Smith seconded the motion, passed unanimously.
7. Birdelle Brown’s May 23, 1997 Decision Memorandum re: Bear Lake County (Paris Exchange)   Petition for Inclusion in the Southeastern Idaho Extended Calling Area.
Birdelle explained that the petition was for EAS from Bear Lake to all of Southeastern Idaho.
Commissioner Hansen asked - when an investigation is opened on these, what is the procedure that the staff then takes?  
Birdelle responded that there is a lot of information staff needs to get from the provider.
Commissioner Hansen asked what the next step was?
Birdelle explained that traffic information is requested and evaluated, then there is a public hearing scheduled and a technical hearing. There has been some discussion by the independents regarding coming in for rate cases in the future. Have scheduled these so the independent companies can consider those in their rate cases.
Commissioner Nelson made a motion that this matter be assigned a case number and an investigation be opened; seconded by Commissioner Smith; carried unanimously.
8. Birdelle Brown’s May 23, 1997 Decision Memorandum re: Driggs, Victor, Tetonia and Felt Petition for Inclusion in the southeastern Idaho EAS.
Commissioners voted unanimously to assign a case number and open an investigation into this matter.
8A. Scott Woodbury’s May 23, 1997 Decision Memorandum re: Case No. INT-G-97-1 Natural Gas Service to Homedale - Application for Temporary Price Adder.
Scott Woodbury reviewed the filing. Explained staff’s concerns after initial investigation. Intermountain Gas responded on May 23 to staff’s concerns.  Scott indicated he discussed the company response with Terri Carlock prior to this meeting. This the company’s proposal but it is not a stipulation with staff.
Commissioner Hansen asked for questions or comments?
Commissioner Smith said she had none.
Commissioner Nelson asked if the original application was for 5 years?
Response was yes, but  staff wanted to go with 7.
Commissioner Nelson asked if there wasn’t a sum certain to be recovered?
Total is $591,000.
Terri Carlock said the biggest concern is it didn’t show what will happen to the customers. Investment is significantly higher so all customers would be paying that.
Commissioner Nelson asked how that tied into the penetration rate?
Terri Carlock responded the company would retain that additional revenue. Under staff’s proposal it would be used to buy down the investment. The buy-down would be similar to what was done with U S West (adding it to the reserve).
Commissioner Nelson asked if the problem was the 5 years versus 7?
Terri Carlock said staff just wanted to make it closer to actual costs for current customers.
Commissioner Smith said she thought the argument on 40/60 was, using 40 you would get a higher adder.
Terri Carlock said that was correct. The adder is to provide the return to the company that is not provided by normal rates.
Commissioner Hansen asked if the Company had comments.
Mike McGrath said company would be more than willing to track that revenue throughout this project. If the company does not achieve more than 40% that would only increase the adder in years 4 and 5. Company is opposed to extending the adder the additional 2 years. Would like to keep the process simple.
Commissioner Hansen asked if the Commission was to go with staff recommendation, does the company see this as inhibiting the company from going into other communities in the future?
Skip Worthan said yes.
Commissioner Nelson said it sounded like the staff has a problem with all the agreements.
Mike McGrath said the reason the company is more comfortable with 40% is there are a lot of older homes that were built for electric heat. They don’t have ducts in place. For those types of homes, the payback wouldn’t be there.
Commissioner Hansen asked if there was a survey?
Skip Worthan said the 40% is generated off a questionnaire.
Commissioner Hansen asked what the pleasure of the Commission was? He then made a motion, based on his desire to see natural gas brought to small communities throughout the state and the value to them and with the company indicating that the staff proposal would inhibit them from choosing to bring natural gas into other small areas,  he would move that the Commission support the 5 year proposal of the Company.
Commissioner Nelson said for different reasons, he would also support the Company; seconded the motion.
Carried unanimously.
**Order should include the willingness to include years 4 and 5.
8B. Scott Woodbury’s May 23, 1997 Decision Memorandum re: UPL-E-97-1 Utah Power & Light Company - RAMPP-4 UPDATE.
Scott Woodbury reviewed the filing. Company indicates they need a new cogen resource. This went out under modified procedure. Staff concurs with the reasonableness and recommends issuance of a letter of acceptance, signed by the Commissioners.
Commissioners unanimously approved staff recommendation.
8C.  Scott Woodbury’s May 23, 1997 Decision Memorandum re: Case No. FLS-W-97-1 Application for Authority to Increase Rates and Charges.
Scott explained what else was involved besides increase in rates. Staff recommends issuing Commission order after company’s June 1 notice goes out.
Commissioner Smith made a motion to handle this by modified procedure, after June 1.
Scott commented Falls Water has changed its status to non-profit and they are requesting a sinking fund for improvements.
Discussed date - July 18 was decided upon.
Motion was seconded and passed unanimously.
9. Terri Carlock’s May 23, 1997 Decision Memorandum re: Mountain Fuel Supply Company - Case No. MOU-G-97-1.
Terri Carlock explained the filing. The Utah Commission does the regulatory evaluation; Idaho does do security issuances - staff recommends approval.
Commissioner Nelson asked if there was financial information available from Mountain Fuel?
Terri said they file an annual report.
Commissioner Nelson made a motion, seconded by Commissioner Hansen; carried unanimously that the filing be approved.
10. Terri Carlock’s May 23, 1997 Decision Memorandum re: Procedural Requirements to Exempt Certain Securities or Public Utilities from the Provisions of the Securities Issuance Law Pursuant to Idaho Code Section 61-909.
Commissioner Smith asked what our usual fee is?
Terri Carlock responded.
Commissioner Hansen made motion; seconded by Commissioner Nelson, carried unanimously to approve staff recommendation - issue a procedural order - waive fee.
Meeting was then adjourned.
Dated at Boise, Idaho, this 29th day of May, 1997.
Myrna J. Walters
Commission Secretary