19970903_1.docx

MINUTES OF DECISION MEETING
September 3, 1997 - 1:30 p.m.
In attendance were Commissioners Dennis Hansen, Ralph Nelson and Marsha H. Smith and staff members Don Howell, Scott Woodbury, Stephanie Miller, Birdelle Brown, Weldon Stutzman, Syd Lansing, Bill Eastlake, Randy Lobb, Don Oliason, Carolee Hall, David Scott, Joe Cusick, Wayne Hart, Tonya Clark and Myrna Walters.  Also in attendance were Mary Hobson, Attorney at Law and John Souba of U S West; Conley Ward, Attorney at Law; Joe Miller, Attorney at Law and Fred Logan of GTE.
Commissioner Hansen called the meeting to order and welcomed everyone back to the “newly remodeled” hearing room.  
Items from the Published September 3, 1997 Decision Meeting Agenda were considered and acted upon as follows.
APPROVAL OF MINUTES FROM PREVIOUS MEETING
1. Minutes of August 12 and August 14, 1997 Decision Meetings and Minutes of Emergency Decision Meeting of August 19, 1997.
Commissioner Hansen indicated that the minutes had been reviewed the Commissioners and corrections had now been made to them.  
Commissioner Nelson made a motion to approve the minutes as corrected. Motion carried unanimously.
CONSENT AGENDA
2. Wayne Hart’s August 29, 1997 Decision Memorandum re: Approval of Interconnection Agreement between Maxtel and U S West; Case Nos.  GNR-T-97-2, MAX-T-97-1.
and
3. Birdelle Brown’s August 29, 1997 Decision Memorandum re: U S West Advice 97-11-N to add Internet Listing to the Directory Listings Service; effective September 7, 1997.
Commissioner Hansen made a motion to approve the two items on the consent agenda.
Commissioner Nelson said he had a question on No. 3. Said the memo indicates the proposal covers cost. Should we be looking at this if it is way over their cost? The monopoly profits?
Birdelle responded that the Commission had not in the past. Thought if the company was recovering costs that is all the Commission looks at.  
Commissioner Nelson spoke to the order regarding non-published/non-listed numbers charges.  U S West is proposing a World Wide Weblisting charge of $12.00 for business, which is $144 a year. Should we be concerned with that?
Birdelle reviewed the information she had received from the company. It is a regulated service and the revenue exceeds the cost based on the information she has.
Commissioner Nelson said he thought there were two votes to approve the filing, but thought that if you analyze a tariff, just determining that it covers cost is not enough.
Birdelle said it has been staff practice to determine that they recover their costs only.
Commissioner Nelson said he also assumed the costs quoted were per month.
Commissioner Hansen said the Chair would entertain a substitute motion if Commissioner Nelson wanted to make it.
Commissioner Nelson commented that if he was going to do something he would do it in a broader context, so won’t do anything now.
Commissioner Smith said she appreciated the clarification that the charges were per month. She shares Commissioner Nelson’s concerns when it is an essential service and can’t be obtained from anywhere else but don’t think E-Mail listings fall into that category.
Commissioner Hansen asked if the Commissioners want to hold this item?
Commissioner Smith said she would call for the question.
Commissioner Hansen said the motion before the Commission is to approve the two consent items.
Vote was 2 to 1 with Commissioner Nelson abstaining.
4. Birdelle Brown’s August 21, 1997 Decision Memorandum re: Idaho Universal Service Fund - 1997 Annual Report - Case No. U-1500-174. (Held from 8-26-97 Decision Meeting) and Birdelle Brown’s August 29, 1997 Decision Memorandum with Additional Information in this matter.
Birdelle reviewed the additional information she had submitted. Staff has now prepared a new Option III.
Commissioner Smith commented that as she stated before, a number of these companies, in fact all of them except Midvale and Inland, have EAS petitions outstanding that the Commission intends to address within the coming year and she only wants to change these people’s rates one time. So would like to wait and make the rate changes at the time of the EAS cases.
Commissioner Nelson said at the last decision meeting, he liked Option III on the original decision memo and he would now made a motion that that be adopted.
Commissioner Hansen asked for comment.
Commissioner Smith asked - if the residential rates don’t change immediately, can the Fund sustain Option III for a year?
Birdelle responded - yes.
Motion carried unanimously.
Birdelle clarified that the Commissioners were approving the Administrator’s Option III.
5. Birdelle Brown’s August 29, 1997 Decision Memorandum re: Silver Star Telecom Advice Letter dated July 29, 1997 Proposing a Revision of its Construction Charges; effective September 1, 1997.
Birdelle reviewed the matter.
Commissioner Hansen asked for questions or comments. Said he had a couple of questions - on Item 1, when they are asking for the $1,600, is that compared to currently the 660 ft. the company provides?
Tariff now reads 660.
Commissioner Hansen said he wondered how much of an increase this was?
Birdelle did not know.
Commissioner Hansen asked what made up a “couple”?
Response was more than one person.
Commissioner Hansen asked what the pleasure of the Commission was?
Commissioner Smith made a motion to approve Item 5.
Passed unanimously.
6. Birdelle Brown’s August 29, 1997 Decision Memorandum re:   U S West Advice 97-10-N to Introduce National Directory Assistance Service in Northern Idaho; effective September 1, 1997.
Birdelle explained the filing. It is an add-on rather than a change. It is 85 cents for National Directory Charge. Staff recommended a follow-up report in 6 months. She mentioned the letter filed by MCI in this matter. Thought if the Commissioner did a review in 6 months, the Commission will know what the FCC has determined.
Commissioner Nelson asked how anyone who uses this service knows how they will get 2 calls for their 85 cents?
Birdelle suggested notice to the customers.
John Souba of U S West responded that when someone asks for more than one number they are told at the time of the request.
Commissioner Smith then made a motion to approve the tariff. Motion carried unanimously.
7. Birdelle Brown’s August 29, 1997 Decision Memorandum re: U S West Advices 97-12- N, 97-13-N, and 97-14-N to Revise its Termination Liability Assessment for Contracts, Private Line Transport Services and Advanced Communications in Northern Idaho; effective September 7, 1997.
Birdelle reviewed the decision memorandum; staff had listed their concerns.
Commissioner Hansen asked if the Commissioners had questions. Said he had one concern, on Page 2 of the Decision Memo, it says “however, the revision will also apply to private line subscription and various data services that might be used by individuals and small business customers.” Could this have a big effect on residential and business customers in the future? Gave an example of where a while back on a cellular promotion, he had to sign up for a year and he was locked into that, when he could have made a better deal. As things unfold, could residential customers be locked in, is that a possible reality?
Birdelle agreed that could be a concern. Now monthly options are available but she thought the possibility of customers getting locked in and paying full rate for 3 years for a service that they may only use for year and decide it isn’t what they wanted, is a possible result of this tariff.
Commissioner Smith asked if the only time termination charges applied is when it is a contract?
Birdelle responded - when there is a “tariff” contract.
Commissioner Smith asked if people get contracts because they needed special facilities, special construction, etc.?
Birdelle commented that the non-recurring costs and monthly charges recover their costs. Think it would be a significant recovery. Suppose there might be cases of stranded equipment. That didn’t appear to be a problem originally.
Commissioner Hansen asked if this was legally signed contract or is it a verbal contract? Could that happen in this situation too? Could U S West have tariff that once you agree are you bound by a contract?
John Souba said the existing language includes a termination penalty. Company is only asking for individual by individual service and individual length of contract. The typical customer is signing up for this to benefit monthly. U S West is asking for flexibility to ink in individual terms.
Commissioner Nelson wondered if the Commission wouldn’t benefit from holding this tariff advice for a week and thinking about it.
Commissioner Smith asked who the customers were?
John Souba responded - City of Lewiston and Potlatch.
Commissioner Nelson asked to have the matter held until the next decision meeting.
Matter will be held until September 8, 1997.
8. Carolee Hall’s August 29, 1997 Decision Memorandum re: U S West Advice 97-10-S to Revise the Basic Local Exchange Tariff to Comply with Commission Order No. 27100 effective August 21, 1997.
Carolee reviewed the decision memo. Said everything was correct in the filing except for the ITAP amount. Staff first recommended denial. Staff would like to see ITAP surcharge broken out. The ITAP rates in the addendum to her memo are requested to be put in the tariff filing and look at reconsideration without anything else being held over.  
Commissioner Smith commented - she disagrees and does not want the ITAP listed separated on the bill. Anytime you do that you may get a target for people to shoot at. If we decided that the public interest requires it and the legislature mandates it, she opposes setting it out separately.
Carolee said staff recommends approving all rates excluding ITAP and ITAP correct rates be put on this filing and also the surcharge, there is a 4 cent difference being charged to customers - it should be 3 cents and they are being charged 7 cents,  for another 3 months. Said U S West would like to leave it as is and take a look at it on reconsideration.
Commissioner Smith said the company would want to make all the changes at once.
After discussion , Commissioner Nelson made a motion to approve staff recommendation with the exception of ITAP. Put the company on notice that an over collection would be subject to refund when we do reconsideration.
Mary Hobson of U S West commented at this time. She asked that the record reflect that the rate in the tariff was the rate provided by order. Subsequently staff has determined that there is an error in the ITAP rate itself. They are asking U S West to make that change. Company believes that there will be other changes to be made later. Just want the record to reflect that the Company complied with the order and staff is now asking for an interim change. The ITAP surcharge when the order was issued, the staff didn’t overlay the change, the company had a much shorter time to implement and the company overlooked it also. Company admits they have made an error.
Commissioner Nelson said that is basically what his motion said.
Voted on the motion.
Carried unanimously.
9. Scott Woodbury’s August 29, 1997 Decision Memorandum re: Case No. CAP-W-97-1 Capitol Water Corporation Motion to Compel and Request for Hearing.
Scott reviewed the decision memorandum. This matter is set for prehearing conference on September 11. The main issue is jurisdiction and enforcement powers. Staff had recommended that that be done however on reflection that is not the best option to the petition. Spoke to Woody Richards’ motion. Staff would suggest that the commission not act on any of the motions until it issues its order following the prehearing conference next week.  
Commissioner Smith said she didn’t understand where we get the answer for the motions.
Scott responded. Recommended hearing them after the prehearing. Commission would have to be ready to move on the jurisdiction from the bench if the Commission hears the motions immediately following the prehearing conference.
Commissioner Hansen asked what the pleasure of the Commission was.
Commissioner Smith made a motion to take no action; motion carried unanimously.
10. Scott Woodbury’s August 29, 1997 Decision Memorandum re: Case No. UWI-W-97-5 North State Area--Rate Phase In.
Scott reviewed the matter. Spoke to Phase II. Matter of Rate Phase In has been noticed for modified procedure. Went over Commission decisions.
Commissioner Nelson said he would move approval of staff recommendation.
Passed unanimously.
Commissioner Smith asked for clarification of the 1.5 cents per hundred CF - winter and 16 cents in the summer.
Decision meeting was adjourned.
Dated at Boise, Idaho, this 8th day of September, 1997.
Myrna J. Walters
Commission Secretary