19990809_1.docx

MINUTES OF DECISION MEETING
August 9, 1999 - 1:30 p.m.
In attendance were Commissioners Dennis S. Hansen, Marsha H. Smith and Paul Kjellander and staff members Birdelle Brown, Scott Woodbury, Brad Purdy, Joe Cusick, Tonya Clark, Carolee Hall, Bob Smith, Ron Law, Randy Lobb, Cheri Copsey, Stephanie Miller, Terri Carlock, Lynn Anderson and Myrna Walters. Also in attendance were Joe Miller, Attorney at Law and Jeannette Bowman of Idaho Power Company.
Commissioner Hansen called the meeting to order.
First item of business was approval of the Minutes of the July 26, 1999 Decision Meeting. The Minutes have circulated to the Commissioners for their review.
Commission President Dennis Hansen made a motion to approve the minutes; vote taken; motion carried.
Next to be considered was the item on the CONSENT AGENDA.
Commissioner Hansen called for questions or comments from the Commissioners.  
Commissioner Kjellander made a motion to approve Item 2 on the Consent Agenda.
Vote taken: motion carried.
MATTERS IN PROGRESS
3. Birdelle Brown’s July 30, 1999 Decision Memorandum re: Idaho Universal Service Fund -- 1998 Annual Report. (Held from August 3, 1999 Decision Meeting).
Commissioner Hansen asked if the Commission didn’t bring all the companies that are drawing on the USF up to the threshold of $21.28, would that make the chart in the decision memo out of balance?
Birdelle responded that the $21.28 is residential for all of the companies. Same might be said for the business rates. If they were not brought up to the threshold rate, we would have to say they are not really entitled to USF but the commission has given leeway.  
Commissioner Smith questioned Albion.
Birdelle said Albion went $24.10 when EAS was implemented and that was after May 1. Rates were reported as of May 1.
Commissioner Smith asked: it used to be that the commission determined that for some of these small companies the business rate calculation of 125% was too high so there was a tariffed rate that made the threshold rate and there was a lower billed rate? Are they still doing that?
Birdelle said those who have not come in at $24.10 are still being billed at rates lower than tariff. They are Cambridge, Inland, Midvale and Rural.
Commissioner Smith asked: for those companies when you recommend that the rates be brought to threshold level, are you speaking to the tariffed rates or billed rates and what are we going to do about that?
Birdelle said this problem has been gradually going away with EAS and the $24.10 rate.
Thought everyone will eventually get there except Inland.
Commissioner Smith asked - for the Cambridge business customers, we don’t really know what they are being billed?  
Birdelle said not in this report.
Commissioners then went through the questions on Page 7 of the Decision Memorandum.
1. Does the Commission approve Staff’s recommendation that Albion Telephone Company reduce its access rates to statewide average?
Commissioner Hansen made a motion to approve staff recommendation; motion carried.
2. Does the Commission approve Staff’s recommendation that Direct Communications Company reduce its access rates to statewide average?
Commissioner Hansen made a motion to move all access rate to statewide. Vote taken: motion carried.
3. Does the commission approve Staff’s recommendation that Fremont Telecom reduce its access rates and that its USF draw be reduced annually by the amount of discounts given to its business customers?
Commissioner Smith said her opinion is that when the commission set Fremont’s rates the company’s concerns about multi-line business customers being priced out of the market, were considered. The discount did not apply on the first line. Said she would not be in favor of reducing the USF based on discount for Fremont. Said she could be persuaded. Asked what the amount would be.
Birdelle said there was about $20,000 in discounts projected to be given to multi-line business accounts.
Commissioner Smith said she recalled the testimony about separate lines. Said she would prefer that the commission leave it status quo and have staff give an update next year. (To see what customers it is helping). Would like it to go one more year. Made that a motion. Motion carried.
4. Does the Commission prefer to reduce Rural’s access rates or to include the reduction in the final resolution of GNR-T-97-9; GNR-T-98-18?
Was covered in Commissioner Hansen’s motion on No. 2.
5. Does the Commission approve Staff’s recommendation that Cambridge, Midvale and Inland revise all of their rates to meet the threshold rates?
Commissioner Smith said she was curious - that is an almost $7.00 increase, what process should be used to raise those rates?
Birdelle said for Cambridge they said they had EAS cases pending. Perhaps if they were brought up to statewide level, it would give the customers something for that increase. For Inland, don’t have any real good solution for them.  
Cheri Copsey said for Midvale, there is one EAS case but staff will probably be filing a motion to dismiss that. Holding off may not solve the problem.
Birdelle said the increases could be phased in.
Commissioner Kjellander said if it is a phase in, Commission should look at that. Suggested it might be good to delay action on Question No. 5.  
Commissioner Hansen asked if there was a timing problem on phasing this in?
Birdelle said the commission needs to issue its order for USF in general, by September 1 to become effective October 1. We are talking now about whether or not these companies will continue to qualify. Said she could put together the numbers for phase-ins.
Commissioner Smith said she thought it might be prudent to call the companies and tell them the Commission is considering ways to bring them up to statewide average and see what their preferences are.
No. 5 will be held until the August 16 decision meeting.
6. Does the Commission approve the Administrator’s recommended change in funding (increasing the toll surcharge to $0.003 per minute?
Commissioner Smith made a motion to adopt that recommendation.
Birdelle commented that when this item was held from last week’s decision meeting, it was because of deliberations on Rural, asked if the Rural decision would affect this?
Commissioner Smith said she didn’t have the precise figures in her head.
No. 6 will also be held until next week’s decision meeting.
4. Scott Woodbury’s August 6, 1999 Decision Memorandum re: Joint Petition of United Water and Barber Water. Agreement for Operation/Management of Barber Water System.
Scott reviewed the matter. Said staff has some concerns. commission will recall there was previously an agreement for purchase and sale which ended up being dismissed.   Were advised of a subsequent agreement, copy of which has not been provided. Staff is concerned there may be come confusion on the part of the customer and requests that the order be clear that the Commission is not approving an agreement and that the customers will have input into such a filing. Should this arrangement continue beyond 60 days, staff is recommending that the companies participate in a proper accounting protocol. Said Mr. Miller was present and he could respond to questions.
Commissioner Smith said it was her recollection that the application was withdrawn, not dismissed.
Commissioner Kjellander made a motion to approve the agreement. Motion carried.
5. Scott Woodbury’s August 6, 1999 Decision Memorandum re: Case No. BIT-W-99-1 (Bitterroot Water) Rate Case.
Scott reviewed the matter. Commission decisions needed are: Does the commission continue to find modified procedure appropriate and does the Commission continue to find the Staff proposed revenue requirement and rate design to be fair, just and reasonable? The Company in its application requested increased revenues of $9,636 or an 80% increase. Staff recommended an increase of $4,153, a 32% increase.
Commissioner Kjellander said he just needed to know a little more about the community itself, size of the lots, the subdivision profile, etc.  
Bob Smith replied he had visited the subdivision several times. It is an upper middle class subdivision.
Commissioner Kjellander asked if they had another water source there?
Bob said they did not.
Commissioner Hansen asked what the pleasure of the Commission was?
Commissioner Smith said she would move approval of the rates noticed out. Customers were given information from several sources. There was no further discussion. Motion carried.
Commissioner Smith added to the motion that the tariffs be effective on one day’s notice.
RULEMAKING
6. Cheri C. Copsey’s August 6, 1999 Decision Memorandum re: Proforma Proposed Amendments to Various Commission Administrative Rules.
Cheri reviewed the proforma changes. Said in addition to changes in this memo, the proforma changes to take out Regulated Carrier should also be done at this time.
There was no discussion on the matter.
Commissioner Hansen made a motion to approve the rule changes proposed by staff. Vote taken:  motion carried.
7. Cheri C. Copsey’s August 6, 1999 Decision Memorandum re: Proposed Revisions to Rule 106, IDAPA 31.46.01.106.
Commissioner Kjellander made a motion to approve the proposed revisions; vote taken: motion carried.
Meeting was then adjourned.
Dated at Boise, Idaho, this 12th day of August, 1999.
Myrna J. Walters
Commission Secretary