19970819.docx

MINUTES OF SPECIAL (EMERGENCY) DECISION MEETING
OF IDAHO PUBLIC UTILITIES COMMISSION -
Tuesday, August 19, 1997 - 10:30 a.m.
Commissioner Marsha H. Smith’s Office
In attendance were Commissioner Marsha H. Smith, staff members Don Howell, Terri Carlock, Syd Lansing, Bill Eastlake, David Scott and Myrna Walters. Commissioners Dennis Hansen and Ralph Nelson were present by conference call from Soda Springs, ID and Coeur d’Alene, ID, respectively. Also in attendance were Mary Hobson and Jim Wozniak of U S West,  and Al Fothergill for Idaho Citizens Coalition and Wendell Phillips for Idaho Consumer Affairs.
Subject of the Emergency Meeting was the Petition for Stay of Commission Order filed by U S West on August 18, 1997, in IPUC Case No. USW-S-96-5.
Commissioner Marsha H. Smith asked that it be noted in the minutes that this meeting was called under the Emergency Meeting Provision of the Idaho Open Meeting Law, Idaho Code Section 67-2343 (2).
Commissioner Hansen called the meeting to order, via conference call.
Commissioner Smith noted who was in attendance at the meeting, in her office.
Mary Hobson, Counsel for U S West was asked to present the company’s motion.
Ms. Hobson said the Petition was presented because of what the Company’s perceives is a mathematical error in the computation of the revenue requirement in the Commission’s order, related to the Memorandum Expenses. (Petition for Stay which Ms. Hobson reviewed is attached and made a part of these minutes).
Commissioner Hansen asked Ms. Hobson if that concluded her arguments on this matter?
Ms. Hobson further stated that the Stay was requested because a rate reduction creates a lot of work for the company and if in fact, after reconsideration, there is not a rate reduction, the company feels that it would be best to keep the business rate status quo for now. She is making the assumption that if the Commission were to have calculated a positive number initially, the Commission would not have made the slight reduction to business rates. Status quo would be appropriate during review of calculations, upon reconsideration.
Commissioner Hansen asked for comments from staff; then comments and/or questions by other Commissioners.
Don Howell spoke on behalf of himself and other staff members, Terri Carlock, Syd Lansing and Bill Eastlake.
Staff does not oppose the request for stay filed by the Company. Staff did calculate in a different manner what might be the positive revenue requirement. Staff believes 2.5 million is incorrect. Staff, based upon a review of the calculations, allocated expenses between Title 61 and 62 services. If it was the Commission’s intent that the expenses by entirely in ‘61, then that would amount to a deficiency and an adjustment that when you use the new gross-up, would be about 1.25 million positive. Given this uncertainty, rather than the reduction in business rates and then possibly having to increase them, believe it is appropriate to maintain status quo until the Commission rules on issues in the petition for reconsideration that is forthcoming from the Company.
Commissioner Hansen asked if there were questions by either of the other Commissioners to U S West or staff?
Commissioner Nelson asked about the reduction - was it 75 cents?
Don Howell responded the actual business reduction was $1.50 in the EAS areas. It was much greater for those businesses in the 8 exchanges outside the local calling regions, primarily because they do not have EAS business rate differential.
Commissioner Nelson asked about the difference outside the EAS areas?
Don Howell quoted $6.69 in Rate Group 1 and $4.00 and change in Rate Group 2.
Commissioner Smith said she had no questions, her only comment would be that it certainly wouldn’t be efficient or prudent to make changes when even the staff agrees there has been some kind of an error. Don’t know how large the error is.
Commissioner Nelson agreed as did Commissioner Hansen.
Commissioner Hansen called for a motion.
Commissioner Smith made a motion to grant the Company’s Motion.
Al Fothergill asked to speak - requested that residential rates remain status quo and that they also be stayed.
Commissioner Hansen commented that since the Motion didn’t reference residential he would have a hard time staying residential rates right now. That would be where he was coming from.
He asked the other commissioners about that.
Commissioner Nelson said outside EAS, that would be 50 cents for residential and without having had a chance to consider motions of the parties, would have a problem with staying residential rates.
Commissioner Smith reviewed Commissioner Nelson’s comments for Commissioner Hansen.
Said she was in the same position as the other Commissioners.She understood Mr. Fothergill’s position but if the Commisison is staying a portion of the order, probably should stay it all. However,  after going through the decision process in the case, the residential rate was agreed to after lengthy discussions, and if the revenue requirement is going positive, she thinks it is unlikely that the residential rate  would move but the business may. That is her reason to grant the motion to stay the business rate. If we know that the revenue requirement will go positive there might be some concern that the Commission has been arbitrary, capricious and confiscatory in not staying the reduction of the business rates.
Commissioner Hansen asked Commissioner Nelson if he had further comments?
Commissioner Nelson indicated Commissioner Smith reflected what he thought.
Motion before the Commission was to stay the business rates portion of the order, at this time.
Commissioner Hansen said he would now poll the Commissioners to see if they were in favor of staying business only. He voted in favor as did Commissioner Nelson and Commissioner Smith.  Motion passed unanimously (that business rate be stayed at this time pending U S West filing for reconsideration in this matter) Asked if there was any other business to come before the Commission at this time.
Commissioner Smith clarified that the reductions on non-listed/non published, etc. will be in effect.
Meeting was then adjourned.
Dated at Boise, Idaho, this 19th day of August, 1997.
Myrna J. Walters, Commission Secretary