19970623_3.docx

MINUTES OF DECISION MEETING
June 23, 1997 - 1:30 p.m.
In attendance were Commissioners Dennis Hansen, Marsha H. Smith and Ralph Nelson and staff members Don Howell, Brad Purdy, Stephanie Miller, Weldon Stutzman, Terri Carlock, Rick Sterling, Marge Maxwell, Carolee Hall, Bob Smith, Birdelle Brown, Bill Eastlake, Wayne Hart, David Scott and Myrna Walters. Also in attendance were Jim Wozniak of U S West; Mike McGrath of Intermountain Gas Company; Eileen Benner of A&T, Joe Miller, Attorney at Law and Greg Harwood, Attorney at Law.
Commission President Dennis Hansen called the meeting to order.
Items from the June 23, 1997 Published Agenda were considered as follows.
1. June 10, 1997 Decision Meeting Minutes were held until the next decision meeting as not all the commissioners had had a chance to review them.
Commissioner Hansen reviewed how Consent Agenda Items will be considered - if Commissioners agree to staff recommendation on the items in this category  they can be approved without further explanation or review. This week’s agenda does have one item that will require discussion - No. 9. It was moved to Matters in Progress for discussion. Items 2 thru 3 and 10 and 11 can be considered on the Consent Agenda. Commissioner Nelson moved approval of these items; approved unanimously.
9. Carolee Hall’s June 18, 1997 Decision Memorandum re: GTE Northwest, Inc.’s Advice 97-06 Requesting Approval to Modify its Service Performance Guarantee.
Carolee reviewed the tariff filing. Said staff had considered it as an expansion of an existing program and was going to recommend approval as an extension to a current policy in effect; would still recommend approval, even after the filings of AT&T & MCI.
Commissioner Hansen called for discussion/questions by the Commissioners.
Commissioner Nelson commented that apparently the companies have some concerns, wonder if we shouldn’t give them an opportunity to expand on their filed comments before this matter is considered.
Eileen Benner of AT&T said AT&T’s concern is that the local market is expected to become competitive and the monopoly-provider needs to allow for competition. Offerings such as this need to be carefully checked until there is sufficient competition. They have no local competition at this time.   US West is attempting to use the ability to reach 100% of the local market share to gain long distance customers by way of a calling card offering. No other company can do this at this time. When a new customer calls up and GTE explains that and then tells them about the credit, then maybe the next question will be, who would you like to be your long distance carrier? It gives GTE an advantage with existing customers.
Joe Miller, Attorney for MCI said he thought Eileen summarized it well. Another way of saying it is, different services and tariff advices that in the past seemed innocuous, with moving to competition, the local monopoly attempts to use that to gain advantage in other markets which is the whole evil to be guarded against. MCI would just request further analysis and comment to fully evaluate this; would like a reasonable opportunity for analysis and comment recognizing that during the suspension, the customers would still have alternatives.
Commissioner Smith said that as she thought about this, she had a hard time finding the competitive value, the customer makes the choice. At that point in time it would be more desirable to have the credit card versus something off their bill in the future. Know that ATT& GTE are in arbitration, the fact that you are not now in the local market,  it is just a matter of time before you are and then why wouldn’t you be able to make same type of offer when you are in the market. Don’t oppose giving them a couple of weeks to change her mind.
Commissioner Hansen said he would be open minded to looking at it a little more, rather than approving the tariff today, would let the other parties respond through modified procedure where they could look at this in greater detail.
Don Howell said he would recommend suspending the tariff and putting it out for comment and give GTE response time also.
Commissioner Nelson said calling card might seem attractive but if its 30 cents a minute, and others are available for 10 cents, wonder if the customer knows that?
Commissioner Nelson made a motion to suspend the tariff and put it out on modified procedure for a 14 day comment period.
Approved unanimously.
12. Scott Woodbury’s June 17, 1997 Decision Memorandum re: Case No. HPN-W-97-2 Hayden Pines Water Company Cancellation of Certificate of Public Convenience and Necessity No. 281.
Brad reviewed the details of the decision memo, in Scott’s absence. . Went over staff’s concerns. Staff is recommending it be set for formal hearing and allow staff to investigate.  
Commissioner Hansen made a motion that final action be stayed in this matter pending
further staff action.
Approved.
13. Scott Woodbury’s June 19, 1998 Decision Memorandum re: Case No. INT-G-97-2.
Brad Purdy reviewed the matter. Said staff agreed with everything except the DSM elimination.  Staff has recommended that the application be approved with the exception of the DSM change.
Commissioner Hansen asked if Commission  eliminated  DSM requirement, how hard would it be to include it at a later date if we eliminate it now?
Brad Purdy said he didn’t think the Commission was ever precluded from changing it.
Commissioner Nelson asked - what we are considering here is the work load compared to benefit? Was wondering if IGC and staff can work with Idaho Power Company and develop some cost numbers for various programs   Don’t know that the company would have to do this on a stand-alone basis.
Rick Sterling said as far as doing it in conjunction with another utility, don’t know about that; as far as whether it is permanent or not, think it could be eliminated at a later date rather than now.  A lot of DSM things cannot just be stopped and started; could affect the timing on some of the programs. Procedurally it would be easy but the programs may not respond as quickly.
Commissioner Smith said she supports staff in opposing the elimination of the DSM. Would approve the application except for that portion of it.
Commissioner Hansen said he thought staff commented that they presently didn’t see this as having much value; price of gas right now makes this so the DSM is not effective.
Rick Sterling said that is generally true right now. Gas prices have changed quickly in the past.  Don’t know how permanent these programs will be.
Commissioner Nelson said if gas prices are that volatile he is in favor of the IRP process but doesn’t want to require the company if its not necessary.
Mike McGrath of IGC commented that he sees the staff request as nothing more than requiring IGC to give a general explanation as to why DSM is cost effective or not. Don’t see it as requiring a lot of time. Don’t see it as adding additional burden on the company; simply keeping an open mind if DSM is effective.
Rick Sterling said he would concur that that was staff’s  interpretation. Don’t think we are looking for any elaborate details. Think staff is looking for an analysis that is appropriate for the scope of the program and its possibility of being cost effective.
Commissioner Nelson said he would support Commissioner Smith’s motion.
Commissioner Smith said she would renew her motion.
Motion carried unanimously.
14. Weldon Stutzman’s June 19, 1997 Decision Memorandum re: Petition to Intervene by AT&T in the McLeod v. US West (CENTREX) Case; Case No. USW-T-97-5; MTI-T-97-1.
Weldon reviewed the decision memo - U S West requests oral argument on their motion.
Commissioner Smith said the Commission has a longstanding policy of granting intervention in all matters and have a good record of policing advocacy so that issues do not go beyond the scope. But if people want to argue about it, she would listen to it.
Commissioner Nelson agreed that the Commission has been very liberal in granting motions. If AT&T tries to burden the case, U S West can object. Think we should go ahead and approve the intervention.  
Commissioners unanimously approved AT&T’s intervention in this case.
14A. Wayne Hart’s June 20, 1997 Decision Memorandum re: GTE Payphone Tariff New Service Test Revision GTE-94-04.
Wayne reviewed the memo. Commission approved the original unbundling on April 23. Results of new service test indicated that these optional features have doubled mark up over their cost. Staff analysis indicates that the concerns were valid, so staff recommends that this tariff revision not be approved, that it be suspended and the company be ordered to file non-discriminatory tariffs.
Commissioner Smith said she had a concern that we not short circuit GTE. Need to have discussions with them and think of how they want to price it but she is not ready to tell them what to rate call out.  
Commissioner Smith made a motion to suspend the tariff and have the discussion continue and tell GTE to look over its proposal again.  
Carried unanimously.
15. Petition of United Water Idaho Inc. for authority to execute and deliver to the Idaho Water Resources Board a loan agreement with respect to the loan proceeds of a sale of up to $20,000,000 of Water Resource Development Revenue Bonds. Case No. UWI-W-97-2.  
Terri Carlock reviewed the decision memo. Staff recommends approval with filing of documentation.
Commissioner Hansen asked Terri about her concerns.
Terri said she thought it might be unnecessary.
Commissioner Hansen made a motion to approve the application. Carried unanimously.
Items 16 and 17 under Fully Submitted Matters will be privately deliberated.
Meeting adjourned.
Dated at Boise, Idaho, this 7th day of July, 1997.
Myrna J. Walters
Commission Secretary