19990315_1.docx

MINUTES OF DECISION MEETING
March 15, 1999 - 1:30 p.m.
In attendance were Commissioners Dennis Hansen, Marsha H. Smith and Paul Kjellander and staff members Don Howell, Scott Woodbury, Cheri Copsey, Ron Law, Birdelle Brown, Joe Cusick, Wayne Hart, Doug Cooley, Randy Lobb, Bev Barker, Weldon Stutzman  and Myrna Walters. Also in attendance was Jim Wozniak of U S West;  and Mike Cole and Renee Weller of GTE.  
Commission President Dennis Hansen called the decision meeting to order.
Items listed on the Published March 15, 1999 Agenda were discussed and action taken as recorded herein.
First order of business was approval of the Minutes of the March 1 and March 8, 1999 Decision Meetings. Since the minutes had circulated to the Commissioners and corrections had been made, Commissioner Hansen made a motion to approve the minutes; vote was taken on the motion; motion carried.
Next to be considered was the CONSENT AGENDA, consisting of Items 2, 3 and 4.
Commissioner Hansen asked if there were comments or questions on any of the items on the Consent Agenda.
Commissioner Smith made a motion to approve the items on the consent agenda; vote taken; motion carried.
MATTERS IN PROGRESS were then considered.
5. Doug Cooley’s March 8, 1999 Decision Memorandum re: GTE Advice No. 99-02 Changing Directory Assistance Fee.
Doug reviewed the decision memorandum. Said staff believes GTE is recovering their costs and they recommend approval.
Commissioner Smith asked if this was going to increase revenues for the company?
Doug responded it is proposed that it will, approximately $60,000 annually.
Commissioner Smith asked if any rates were going to be decreased? Was wondering why the Commission is asked to do this outside of a rate case?
Doug said he thought it was to recover for the free directory assistance calls.
Commissioner Hansen asked what U S West charges for directory assistance?
Doug responded for U S West South it is 35 cents with no free calls and for U S West North it is 60 cents with no free calls.
Commissioner Hansen asked what the pleasure of the Commission was. Said he thought Commissioner Smith made a good point. Said he did worry about generating more revenue for the company; had some concerns, asked if staff saw other areas where there would be a reduction to the rate base? This is going to be an increase, are there others?
Doug replied that based on what has been submitted he hasn’t seen any others at this point. There are other services it could affect. Can’t speak for GTE at this time.
Commissioner Kjellander said it would appear that something is currently subsidizing the cost. What is that?
Doug replied with the free calls before, they feel it is an incentive to get to volume. Perhaps that was what they were operating at before. Don’t know if there was subsidy to that or not.
Commissioner Hansen said at this time he personally thought it would be better to wait and he would make that a motion that we hold this and keep it at the current structure now; or he would accept a substitute motion. Asked if there was further discussion or a substitute motion?
Vote was taken on motion to hold the matter; motion carried.
6. Birdelle Brown’s March 10, 1999 Decision Memorandum re: GTE Advice 99-03 To Eliminate The Equal Access Recovery Charge (EARC) Effective Immediately.
Birdelle reviewed the decision memorandum.  
Commissioner Hansen asked when staff last audited GTE?
Birdelle thought there was a desk audit in the last two years.
Don Howell responded he thought staff performed an audit in conjunction with the rate rebalancing case last year.
Commissioner Hansen said he wondered why we couldn’t have picked this up from the audit.  
Birdelle Brown explained equal access and said the reason for the delay in information was a billing problem, there is a whole billing cycle necessary to ascertain those costs.
Commissioner Kjellander said without knowing how much they recovered, couldn’t they have already over-recovered?
Birdelle responded that within 60 days staff should have a report. It was specified in the settlement conference that they will not over or under recover and if they recover too much they will pay it back. Don’t want them to bring in any more funds if they have over-recovered.
Commissioner Kjellander asked if there was a dollar amount submitted that they needed to collect?
Birdelle said she was given proprietary information. She showed that to the Commissioners.
Commissioner Smith then made a motion to approve the advice to cease collecting the charge. Vote taken: motion carried.
7. Wayne Hart’s March 12, 1999 Decision Memorandum re: TDS Telecom/Troy Telephone Company Request to Withdraw Proposed Calling Plan for Troy-Moscow Case No. GNR-T-96-11.
Wayne reviewed the decision memorandum. Company responded to customer pressure by proposing an alternative calling plan in 1996. It did not have an effective date. There have been a number of discussions between staff, Troy (TDS) and GTE regarding the proposal, in the ensuing years since the proposal was submitted. But GTE and Troy have surveyed their customers to see what they thought of the optional calling plan and customer reaction was not very good when Troy proposed the plan. So they reconsidered going back to the drawing board to come up with something else. Staff has worked with the company to come up with a calling plan that would be revenue neutral but also offer options. Company has tried and has not come up with a new plan.  Staff has reviewed their analysis and find that the rates that are currently being offered for this are as low as the company could offer on a revenue neutral basis and the best alternative is for the customer to shop around. Without subsidy from USF, staff finds no option but to allow the company to withdraw this filing and close the case.
Commissioner Smith asked that the minutes reflect that Representative Tom Trail contacted her today. Apparently some of the customers had contacted him about the withdrawal of the plan. He is well aware of the on-going investigation of this case over the past years.   Said she told him it seemed to everyone that competition is a better solution than any regulatory fix that could be devised by the Commission and that seemed to be the short answer.  If the customers are still unhappy they can file further petitions. But wouldn’t expect a different decision. The case has been open since 1996, so it would be appropriate now to close it.   Made a motion to approve the requested withdrawal and close the formal case. Vote was taken on the motion; motion carried.
8. Scott Woodbury’s March 12, 1999 Decision Memorandum re: Case No. UWI-W-99-1 (United Water) Certificate Amendment--Non-Contiguous Carriage Hill and Coventry Place Subdivisions.
Scott reviewed the decision memorandum. Staff proposed some modifications to the Company’s application. Company has apprised staff that the modifications are acceptable to the Company and developers and that the Company has indicated that it will comply with any order requiring same.  
Commissioner Hansen asked if in approving this, will this increase the summer-peaking problem for United Water? Is this going to put added pressure to meet the demand?
Scott said it will have its own water source.
Commissioner Hansen asked if this was a dual irrigation system?
Scott indicated it was.
Commissioner Smith made a motion to approve the application. Vote was taken on the motion; motion carried.
9. Don Howell’s March 12, 1999 Decision Memorandum re: TRS Funding Levels, Case No. GNR-T-99-3.
Don Howell reviewed the matter. Thought that it might not have been clear when the matter was discussed at the March 1, 1999 decision memorandum, that the fund currently has a balance of $99,724. When staff started preparing the order in this matter staff had questions. That is why the matter is back on the agenda, staff is simply seeking a clarification of the earlier decision.
Commissioner Smith had a comment  - said it was really easy to overlook something that was not included.
Commissioner Kjellander said the concern he had was whether the two months’ balance (2.6) was enough.  
Doug responded that the prudent thing may be to have 2 to 3 months since the accounts pay quarterly. Anything near 3 months would be wise.
Commissioner Kjellander commented that the last time this was reviewed, Commissioners approved Option 2, so what staff is asking for now is to retain existing rates? So at current rates it boots it to 3 months?
Doug said if the original decision is kept, it would be $139,000 and that might be too much.
Commissioner Kjellander said with that in mind he would be more apt to lean towards keeping the existing rates. It would give the Commission the 2/3 months cushion and it could always be reviewed again if we need to adjust it downward. Wouldn’t feel comfortable to decrease it.  
Would make that a motion to leave the fund at the current level and adopt Option I in the decision memorandum.
Commissioner Hansen asked if there was discussion.
Commissioner Smith said she would vote in favor of the motion but thought the Commission wanted to close the gap between what local and toll are contributing. Remember to attend to that next year.
Vote taken on the motion; passed unanimously.
10. Don Howell’s March 12, 1999 Decision Memorandum re: Petition to Close the “OLD” Railroad Grade Crossing in Ponderay, Case No. UPR-R-99-1.
Commissioner Hansen announced that this matter would be held until the next decision meeting.
Meeting was then adjourned.
Dated at Boise, Idaho, this 18th day of March, 1999.
Myrna J. Walters
Commission Secretary