19990726_1.docx

MINUTES OF DECISION MEETING
July 26, 1999 - 1:30 p.m.
In attendance were Commissioners Dennis S. Hansen, Marsha H. Smith and Paul Kjellander and staff members Don Howell, Doug Cooley, Cheri Copsey, Scott Woodbury, Weldon Stutzman, Tonya Clark, Bob Smith, George Fink and Myrna Walters. Also in attendance were Bill Glynn and Skip Worthan of Intermountain Gas Company; Jeanette Bowman of Idaho Power Company and Woody Richards, Attorney at Law.
Commission President Dennis Hansen called the meeting to order.
Items on the published July 26, 1999 Agenda were discussed and acted upon as recorded herein.
First order of business was Approval of the Minutes of the June 28 and July 14, 1999 Decision Meetings. The minutes have circulated to the Commissioners and corrections have been made. Commissioner Hansen made a motion to approve the minutes; vote was taken on the motion; it passed unanimously.
Next to be considered was the CONSENT AGENDA - Items 2 through 8.
Commissioner Smith had a question on Item 2 - Carolee Hall’s July 14, 1999 Decision Memorandum regarding U S West Tariff Advice No. 99-04-N compliance filing in Case No. GNR-T-94-5. She asked about the implementation costs.
Weldon Stutzman said he thought all the issues will be decided by the Commission when U S West’s cost recovery docket is opened to review specific costs and allow for a true-up of the EANRC in the event that the recovery is too high or too low.  
Commissioner Smith asked what the Commissioners were approving today?
Weldon said he didn’t have a copy of the decision memorandum in front of him but he thought it was the tariff to go ahead and implement what U S West has proposed to be reviewed later.
Commissioner Smith then made a motion to approve staff recommendations on all items on the consent agenda. Vote taken; motion carried.
Then considered were the items under MATTERS IN PROGRESS.
9. Weldon Stutzman’s July 20, 1999 Decision Memorandum re: Case No. INL-T-99-1; Motion by Inland Telephone company for Order Suspending Its Dialing Parity Deadline.
Weldon reviewed the matter.  
Commissioner Hansen called for questions or comments.
Commissioner Smith noted that even though Leon is a small area there is an active resident who may contact the Commission, but nevertheless she would make a motion to approve staff recommendation.
Vote taken; motion carried.
10. Weldon Stutzman’s July 22, 1999 Decision Memorandum re: Commission Response to Correspondence from United States Cellular Corporation.
Weldon reviewed the matter.Staff is recommending the Commission send a letter response, draft of which is attached to the Decision Memo, including a phrase addressing the issue of past surcharges it hasn’t been collecting. Question of the Commission is: should a letter be sent in response to their letter and if so, does the Commission want to include the language about past ITSAP surcharges?
Commissioner Hansen called for question or discussion?  
Commissioner Smith said she thought the response should be  that they immediately start collecting and remitting immediately,  along with what they should have been collecting all along. What they should have been collecting they can take out of their own pocket.
Commissioner Kjellander said he agreed with the changes proposed. Asked if the Commission knows what the additional amount may be for the surcharges, going back?
Weldon said he didn’t know. The amount was recently changed from 13 cents to 8 cents. It would involve 13 cents for about a year. Don’t know the number of customers U S Cellular has.
Wayne Hart responded that staff didn’t have exact numbers. They have not reported to date.Only source is their report.
Commissioner Kjellander asked if the company decided to under-report and under-pay, there is no way for the Commission to check on that?
Wayne Hart said that was correct.
Commissioner Hansen then made a motion to approve staff recommendation with the suggestion of Commissioner Smith regarding payment of what has not been collected previously.  
Vote taken; motion carried.
11. Doug Cooley’s July 26, 1999 Decision Memorandum re: GTE Advice No. 99-09 Regarding Modification to GTE’s General Exchange Tariff to Include Integrated Services Digital Network (ISDN).  
Doug reviewed the matter. Said previously this was on a contract basis. Now they propose to tariff it. GET estimates the revenue will be $90,000 to $300,000. Staff has reviewed the application and believes that they will more than recover the costs for this service. Staff also notes that the contract customers will not see an increase in the rates so staff is recommending approval and has come to the Commission for approval.  
Commissioner Hansen asked if staff was concerned that they will more than recover costs for this?
Doug replied that in comparing it to other advance services, it didn’t seem out of line.
Commissioner Smith asked when the Commission was going to audit GTE again?
Doug replied he didn’t know when the next one was scheduled for with the accounting section but think it may be out there a couple of years.  
Commissioner Hansen asked if there were any other questions? Hearing none, he made a motion to approve staff recommendation and approve the tariff.
Vote taken: motion carried.
12. Scott Woodbury’s July 23, 1999 Decision Memorandum re: Case No. GNR-W-97-1; (Grouse Point Water Company) Certificate Application/Rates.
Scott reviewed the matter. Indicated two sets of comments were received. Pointed out the concerns of the commenters.  
Commissioner Hansen called for questions or comments.
Commissioner Smith said she would approve the $25.00 flat rate that was justified on the audit.  It is consistent for flat rate tariff customers of United Water. Said she did share the customers’ concerns if there are consumers using drinking water for irrigation and think the Commission should put language in the order to advise these customers and send the order to them, indicating that their excessive use could require that meters be installed so people can pay for what they use. For years the Commission has been encouraging dual systems and we should speak to that. She made that a motion.
There was no further discussion; vote was taken; motion carried.
13. Scott Woodbury’s June 24, 1999 Decision Memorandum re: Case No. INT-G-99-1 (Intermountain Gas) Annual Gas Tracker.
Commissioner Hansen said that there had been previous discussion on this item and since that time the Commission has had filings by staff and the Company. Commission has a pretty good
review of what this entails, so he would open it up for questions or comments the Commissioners want to make on this item on the agenda.
Commissioner Smith said she had to divide it down to the questions that needed to be answered.  1. GRI - in her opinion this contribution is fine. It is worthwhile. She does not want the projects submitted for Commission approval. This is a company management issue. She is confident they will find worthwhile projects. 2. Whether the Williams settlement refund of $72,671 should be included within this PCA, she was inclined to think it should be included in this PCA. It will help some to moderate the increase. 3. The $15,885 interest adjustment - it was her belief the customers shouldn’t be required to pay interest where the error was that of the utility, she would not include that amount. 4. Management fees - staff had proposed two adjustments, permanent and temporary.   Company in their reply comments had a lot of reasons why this the fee was justified. Think probably this time it should be approved but that wouldn’t eliminate all the questions and concerns she would have and she does agree with staff in principle,  having access to the records to identify the savings being claimed. But she would have difficulty in coming up with a number that was sustainable, and did not want to appear to be arbitary and capricious. The fact that the Commission has routinely passed-through these costs and not looked at them, wondered if we should decide if a PCA should be continued, if this is still useful to the Company and the Commission or whether it should be discontinued. Would hope that if the other Commissioners agree, staff would be asked to look at trigger-type mechanisms.
Commissioner Kjellander said he felt the same way on all points, and on the management fees was afraid of being arbitrary. Trying to come up with a number, it would have to be arbitrary. There is no way to support it if we went below the requested amount. For lack of not having additional information, don’t know if we could justify anything but that. Think it is information we need to have and see, to make decisions that are fair to the ratepayers but without the information we are stuck with that. It may not be the right number but don’t have the support for a different number; have to live with it this time.
Commissioner Hansen said he would agree with both Commissioners. Think the customers have been served well by Intermountain Gas Company. They have price stability, reliability, cost savings due to good management of IGC. Think a valuable service is being provided to their customers and think in comparing IGC prices to the prices of companies in the midwest and the east, the Rocky Mtn. area is a good area. However, he too would echo the comments of his two colleagues that down the road it is a touchy subject, the management fee will have to come forth to be able to set true and accurate rates.
Commissioner Smith made her comments a motion; Commissioner Kjellander reviewed the issues, vote taken; motion carried.
Meeting was adjourned.
Dated at Boise, Idaho, this 5th day of August, 1999.
Myrna J. WaltersCommission Secretary