19980713_1.docx

MINUTES OF DECISION MEETING
JULY 13, 1998 - 1:30 p.m.
In attendance were Commissioners Dennis Hansen, Ralph Nelson and Marsha H. Smith and staff members Bev Barker, Scott Woodbury, George Fink, Keith Hessing, Ron Law, Bill Eastlake, Carolee Hall, David Scott, Cheri Copsey, Rita Scott, Tonya Clark, Birdelle Brown, Wayne Hart and Myrna Walters. Also in attendance were Skip Worthan, Mike McGrath and Byron Defenbach of Intermountain Gas Company; Thane Twiggs of Idaho Power Company; Charles McDevitt, Attorney at Law; Woody Richards, Attorney at Law; Mary Ann Hutton of the Northwest Industrial Gas Users and David Hawk of Simplot Company.
Commission President Dennis Hansen called the meeting to order and welcomed all in attendance.
Items from the Published July 13, 1998 Agenda were considered and acted upon as set out in these minutes.  
First matters considered were those on the Consent Agenda - Items 1 thru 8.
Commissioner Hansen asked if there were questions or comment from the Commissioners on these items?
Hearing none, he called for a motion; Commissioner Nelson made a motion to approve the items on the Consent Agenda; motion carried unanimously.
MATTERS IN PROGRESS
9. Scott Woodbury’s June 26, 1998 Decision Memorandum re: Case No. INT-G-98-2 Firm Dist. Only Transp. Service (SCH. T-4) Proposed Modifications to Schedules LV-2, T-1, T-2 and T-3.  (Held from June 29, 1998 Decision Memorandum)
Scott reviewed the Decision Memorandum. It is a tariff offering for large volume customers. Matter went out on modified procedure. Comments were filed by the Northwest Industrial Gas Users, the Staff and Idaho Power Company. Intermountain then filed a reply addressing the concerns raised by the parties and indicating whether or not they were going to enter into areas of agreement. Commissioners from the bench at the 06-29-98 decision meeting indicated they desired further time to review the company’s application and suggested that the company and staff perhaps get together to see if an alternative to the lottery could be proposed for implementing the exit fee waiver. There has been a subsequent filing on July 9.   This may be a more equitable way to speak to the exit fee. Scott reviewed the new filing.
Commissioner Hansen asked if the Company wanted to make comments or did that cover the matter?
Skip Worthan of IGC was in attendance. Said he couldn’t think of any additional comments that weren’t either in the reply comments  or in the application or that hadn’t been incorporated into this latest revision.
Commissioner Hansen asked for questions from the commissioners?
Commissioner Nelson asked if this resolved the issues between the staff and the company? Are there any outstanding issues?
Scott responded no, it doesn’t resolve all of the issues. Think the issues that staff brings up are noted on Page 5 of the Decision Memorandum.
Commissioner Nelson asked about the minimum of 90 days advance notice?
Scott replied there is a question on implementation of the exit fee. Staff advocates remaining period on the contract. Company indicates to follow staff suggestion would entail significant capacity cost which may not be recovered. Company will attempt to market the unused capacity.
Commissioner Nelson asked if there was agreement on #3 where IGC would give any excess back to the customers?
Scott replied that was staff’s position, that there would be agreement.
Skip Worthan said the difference between Intermountain Gas and staff is Intermountain’s original application suggested that there would be a benchmark using the last PGA and anything above that would be returned to T-3 and T-4 customers. Staff’s proposal here is rate on access credit directly to the T-3 and 4 customers. If the Commission decides that this is a better proposal, Company could live with that. Company’s concern initially was the ability to track those. Since the original application was filed, think if the Commission so desires, it can be tracked.
Commissioner Smith commented that in the Wasatch comments, they asked how the exiting customers are going to get credit for those capacity costs. It seems unclear. Said she was confused how that would happen.  
Mr. Worthan said Intermountain didn’t focus on Wasatch’s comments.
Commissioner Smith directed IGC to their response. Said she wasn’t sure how that was going to happen.
Mr. Worthan said he thought his response was correct to Commissioner Nelson. Company now feels they can track amounts individually and pass those on correctly to the customers annually rather than using a benchmark.
Commissioner Smith thanked the staff and the Company for working on an alternative to the lottery. Said there were representatives from the Northwest Gas Users in attendance today and asked if they wanted to respond.
Mary Ann Hutton said she wouldn’t repeat the comments originally put in,  other than to say that they do support T-4 service and do not support the exit fee. However, if the Commission is going to approve an exit fee, would support staff alternative proposal over the company’s; the major difference is the exit fee would be only charged for the remaining time of the contract. If the customers choose to wait until expiration and they give 90 days notice then if they convert, the exit fee would not be imposed. That is still an option.
David Hawk of Simplot had no comments.
Commissioner Hansen then asked what the pleasure of the Commission was?
Commissioner Smith said she would like to know Commissioner Hansen’s thoughts on the matter.
Commissioner Hansen said he was also pleased that staff and the company came back with modifications and changes. Believe the application as filed with changes in the lottery system is good and thought comments of staff and the company where they made changes - think that is where he could now support it. Would now entertain a motion.
Commissioner Nelson said he had some concerns about how these customers who have expiring contracts are required to pay an exit fee when they switch this service. Maybe this is a first step toward a further opening of the market so at least for this first go-around, he was going to make a motion to approve the request as amended by staff and the Company. This takes us through about the next 18 months and if it not working, we can revisit it then.   Said he would then make a motion to approve the tariffs filed by Intermountain Gas Company with the modification
language in the LV 1 and T2 tariffs as agreed to by staff and Company.
Commissioner Hansen called for discussion.
Commissioner Smith said she had some sympathy with the industrial customers about the exit fee and didn’t know enough about the contracts and  it was really a tough decision for her. Asked about the basis for staff’s position?
Scott replied that staff had some concerns with the exit fee that they were not incorporated in the underlying contracts and the Company’s firm service provision in its T-1 tariff and think it would be similar in other tariffs. Would have some serious concerns with extending that beyond the existing contract; however this is an offering on the other hand that the large volume customers want and did see some equity in other customers picking up those costs.
Vote was then taken on the motion: motion carried unanimously.
10. Cheri C. Copsey’s July 6, 1998 Decision Memorandum re: General Policy Docket concerning Designation of USF Service Areas As Required By The Telecommunications Act of 1996 and Idaho Code Section 62-610D(2)--Case No. GNR-T-98-8.
Cheri reviewed the decision memorandum.
Commissioner Hansen commented he thought it was wise to open this docket but he was concerned with the 21 day comment period. Wonder if that is enough time.  
Cheri said she had thought the 21 days and thought it  may be too short a time and wondered about 60/90 days.
Commissioner Nelson said he thought more time should be give for the reply comments also.
Commissioner Smith said she was concerned about the 90 days and also the 7 days.  Didn’t think the Commission had the luxury of 90 days but thought the 7 days was totally out of line.
Commissioner Nelson made a motion that the docket be opened with a 45 day comment period and a 21 day reply comment period.
Motion carried unanimously.
11. Cheri C. Copsey’s July 8, 1998 Decision Memorandum re: Idaho Telephone Association’s Petition to Intervene in Citizens Telecommunications of Idaho’s Application to Rebalance Its Rates For Telecommunications Services, Case No. CTC-T-98-3.
Matter to be considered was ITA’s late-filed Petition to Intervene.
Commissioner Smith made a motion to approve the petition for intervention. There was no discussion on the motion; it carried unanimously.
12. Beverly Barker/Don Howell’s July 8, 1998 Decision Memorandum re: Case No. USW-T-98-7 Formal Complaint Filed By Tel-Save Against U S West.
Bev reviewed the decision memorandum. She has talked to both parties and is recommending that staff attempt to resolve this matter informally. If substantial progress is not made towards reaching an agreement within two weeks, staff will report back to the Commission with a recommendation that a summons be issued.
Commissioner Nelson made a motion to approve staff motion; motion carried unanimously.
13. Beverly Barker’s July 9, 1998 Decision Memorandum re: Formal Complaint Against MCI Filed by Owyhee Plaza.
Bev reviewed the decision memorandum. Staff attempted to resolve this matter informally but because of lack of follow-thru by MCI, a formal complaint has now been filed.  MCI thought settlement was possible and they would like an opportunity to resolve it without it being handled formally. So staff is again suggesting that any action be held until July 24 to see if progress has been made.
Commissioner Smith made a motion to approve staff recommendation to hold the matter until July 24 and hope this has occurred in the last 3 years since that is all we have jurisdiction over.
Meeting was adjourned.
Dated at Boise, Idaho, this 11th day of August, 1998.
Myrna J. Walters
Commission Secretary
19980713.min