19990513_1.docx

Minutes of Decision Meeting
May 13, 1999 - 1:30 p.m.
In attendance were Commissioners Dennis Hansen, Marsha H. Smith and Paul Kjellander and staff members Brad Purdy, Keith Hessing, Bill Eastlake, David Scott, Randy Lobb, Ron Law, Stephanie Miller, Kathy Stockton, Terri Carlock and Myrna Walters. Also in attendance were Larry Ripley and Greg Said of Idaho Power company.
Commissioner Hansen called the meeting to order. Welcomed everyone in attendance.
CONSENT AGENDA
1. Brad Purdy’s May 7, 1999 Decision Memorandum re: Case No. UPL-E-99-1--Application of Pacificorp for Approval of Reductions in BPA Regional Exchange Credits.
There were no comments and there was no discussion regarding this matter.
Commissioner Hansen made a motion to approve the Consent Agenda Item; vote taken; motion carried.
MATTERS IN PROGRESS
2. Idaho Power Case No. IPC-E-99-03 Power Cost Adjustment (PCA) for 5/16/1999 thru 5/15/2000.
Brad Purdy reviewed the matter. Said staff has audited the calculations and believes they were made correctly. Only unique thing about this year’s filing is an issue raised by staff and commented on by ICIP and FMC, which is how do we glean out and separate the company’s speculative tradings activities. As the memo indicates there is an accounting standard that addresses that. Staff indicated that it intends to look at this in the future but it is comfortable with the filing this year. The other parties requested a formal hearing on the matter. They don’t oppose this year’s filing but do encourage the Commission to conduct a formal hearing. Idaho Power responded that it believes that there is a standard and the company does not believe a formal hearing is necessary on that particular issue. Said he has asked the Commissioners two questions - does the Commission wish to approve Idaho Power’s 1999 PCA Filing effective May 16, 1999 and does the Commission wish to conduct a hearing or other proceeding to address the issues raised by ICIP and FMC pertaining to Idaho Power’s speculative trading?
Commissioner Hansen asked if there were comments or questions from the Commissioners. He asked staff about the accounting standard and if they were certain that the costs were properly allocated? Would like to know from the staff, are you 100% sure that with using that standard that the costs are properly allocated to the company’s competitive activities?
Keith Hessing said Kathy Stockton and Terri Carlock got into that area.
Commissioner Hansen said the reason he asked that is because he wasn’t 100% sure those costs are being allocated correctly. If the staff isn’t sure that they can guarantee it without a shadow of a doubt, think we need a workshop or hearing to assure that this is working and that the ratepayers are not subsidizing. He wants to know for sure.  
Kathy Stockton replied that the PCA year only covered 3 months with the new standard and it didn’t allow for an in-depth audit and it just started in January so staff thought more time should elapse before they did a more complete audit.  
Commissioner Hansen asked - so you can’t assure 100% that the allocation is perfect?
Kathy replied - not without a full audit.
Commissioner Smith said she wanted to ask Keith about last year, there was quite a controversy over the PCA and wondered if the charts and information the Commissioners were given could be updated with this year’s numbers?  
Keith said he could get that updated.
Commissioner Smith said she would like to approve the PCA but would like for the staff and the intervenors and the company to have an informal meeting about these questions. More importantly, the customers need to have confidence that the separation of these activities is assured. Would like some assessment before we plunge into something more formal.
Brad Purdy suggested that he could talk to staff about what a “formal” audit is and then the company and intervenors could be contacted to tell them what staff is going to do and see if that takes care of those concerns and if not, one of the parties could formally request a hearing.
Commissioner Kjellander said whether or not we have a full hearing on that, didn’t feel comfortable to make that decision today. Do think sometime a workshop would be helpful. Think it would be beneficial.
Commissioner Hansen said from the discussion we have had, thought the route to go is probably staff and the company working with the other parties as far as a workshop, etc., and get back with the Commissioners.  
Commissioner Smith said her comments earlier were a motion to approve the PCA.
There was no further discussion; vote was taken on the motion to approve the PCA, passed unanimously.
Decision Meeting was then adjourned.
Dated at Boise, Idaho, this 19th day of May, 1999.
Myrna J. Walters, Commission Secretary