19980623_1.docx

MINUTES OF JUNE 23, 1998 - 1:30 P. M.  DECISION MEETING
In attendance were Commissioners Dennis Hansen and Ralph Nelson and staff members Don Howell, Scott Woodbury, Joe Cusick, George Fink, Rick Sterling, Bob Smith, Wayne Hart, Bev Barker, Carolee Hall and Myrna Walters.
Commission President Dennis Hansen called the meeting to order and noted that Commissioner Smith was excused from this decision meeting.
First order of business was the CONSENT AGENDA - Items 1 and 2.
Commissioner Hansen asked if there were any questions or comments in this regard.
Commissioner Nelson asked to discuss Item 2 - Scott Woodbury’s June 19, 1998 Decision Memorandum re: Case No. UWI-W-98-2 Sale and Transfer of South County Water Co. to United Water Idaho Inc.
Commissioner Nelson asked if it was really necessary to have a prehearing conference if it was only for scheduling?
Scott replied a notice of application with intervention deadline set out, could be issued to determine if there are anyother parties that wish to participate and could then do scheduling rather than going to prehearing conference now.
Commissioner Nelson then made a motion to approve the items on the consent agenda with the UWI-W-98-2 matter going out on modified procedure.
3. Don Howell’s June 17, 1998 Decision Memorandum re: GTE Northwest’s Application to Reduce Access Charges and Rebalance Local Rates, Case No. GTE-T-98-2.
Don Howell reviewed the decision memorandum. Said this case was the second phase of a two-phase approach. First phase has already been approved. This is to reduce access charges by an additional 6 cents. It is reducing the CCL and switch charge. Company proposal was reviewed. Staff supports the reduction in access charges. Question before the Commission is: How does the Commission wish to process this? Company asks for modified procedure. Staff is somewhat concerned that this is an increase of approximately $7.85 a line,  so staff has left the decision on the procedure to the Commission.
Commissioner Nelson suggested it be processed under modified procedure but might want to also have public hearings.
Don replied that is what is being done with the Citizens rebalancing case.
Commissioner Nelson made that a motion; motion carried.
4. Scott Woodbury’s June 19, 1998 Decision Memorandum re: Case Nos. FLS-W-98-1 SAR-W-98-2 Purchase/Sale and Proposed Transfer of Certificate.
Scott reviewed the decision memo. Comment deadline was June 12. Staff supports the purchase.  Staff recommends cancelling the certificate of Sargent Water and  including that service area in an amended certificate for Falls Water. Staff also recommends that a master meter be installed; that additional rate tariff be adopted for Falls Water for the Grayson Subdivision and that the purchase price be $2,500. Falls Water accepts staff recommendation. It is incorporated as a non-profit company.
Commissioner Hansen called for any questions or comments.
Commissioner Nelson said it does appear that they are being asked to keep separate books, asked if that was correct?
Bob Smith said the company thought with the use of subaccounts they could keep it separate for a one-year period and then redesign rates for that subdivision.
Commissioner Hansen then made a motion to approve the sale of the system, with staff recommendations. Motion carried.
5. Weldon Stutzman’s June 19, 1998 Decision Memorandum re: Case No. GNR-T-98-6 Implementing Amendments to the Idaho Telecommunications Service Assistance Program (ITSAP).
Don Howell reviewed the decision memo, in Weldon’s absence. U S West’s primary concern was that given the company’s current billing system, they said it is “an extremely difficult and time consuming process” and that they cannot separately identify the ITSAP surcharge on customer bills until January 1999. Company would have to increase the surcharge to the statewide level of 13 cents and then try to modify billing arrangements as soon as possible. Another matter was that the Commission will receive a proposal from the current USF administrator regarding administering the ITSAP fund. Another issue is that in the Commission’s proposed order, Commission estimated the number of wireless lines in the state. Are still firming up that information. Decision before the Commission is whether to adopt  the proposed order; incorporate any of the comments and decide on the administrator.
Commissioner Hansen asked why staff was recommending an outside administrator? Why can’t it be done in-house? That is a question being asked on our audit by the Legislative Auditors,  regarding USF.
Don Howell replied that initially, believe both the existing USF statute and this ITSAP statute did not intend that. If it was to be a function of staff, where would the Commission keep these funds? Would they be deposited with the state treasurer and if so, the interest earned  and put back into those funds, if they were retained by the state treasurer, don’t think the funds themselves would be able to retain the interest.
Commissioner Hansen asked if there were any problems with companies meeting the 1999 deadline for putting the surcharge on the bills as a separate line item?  
Joe Cusick replied - staff has asked U S West to put in some kind of notification on the first bill that this increase is because of ITSAP.
Commissioner Nelson made a motion to issue the proposed order to implement ITSAP amendments on July 1, 1998 and designate Alyson Anderson as the ITSAP administrator but expect  that some telephone companies will not be able to separately identify the surcharge on their customer bills and may not begin remitting surcharge revenues to the administrator until August.
Motion carried.
Meeting adjourned.
Dated at Boise, Idaho, this 15th day of July, 1998.
Myrna J. Walters
Commission Secretary