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MINUTES OF DECISION MEETING
Monday, January 10, 2000 - 1:30 p.m.
Commissioners Dennis Hansen, Marsha H. Smith and Paul Kjellander were in attendance. Commission President Dennis Hansen called the meeting to order and welcomed all in attendance.
First item of business was approval of the Minutes from the November 14, December 20 and December 28, 1999 Decision Meetings. Said minutes had circulated to the Commissioners for their review and corrections had been made. They were now ready for approval. Commissioner Hansen made a motion to approve the minutes; vote taken; motion carried.
Next was consideration of the Consent Agenda which included Items 1 through 7 as listed on the January 10,2000 published agenda.
Commissioner Hansen asked if there were questions or comments regarding any of the items on the Consent Agenda? Hearing none, he made a motion to approve staff recommendations on all items. Vote taken; motion carried.
MATTERS IN PROGRESS
Brad Purdy's December 22, 1999 Decision Memorandum re: In the Matter of the Joint Application of CenturyTel for Rate Rebalancing. (Held from December 28, 1999 Decision Meeting).
Commissioner Smith made a motion to move this matter to the Fully Submitted category and take it up immediately following this decision meeting. There was no discussion of the motion; vote taken; motion carried unanimously.
Scott Woodbury's January 5, 2000 Decision Memorandum re: Case No. TRH-W-95-1 (Troy Water) Interim Rate Order.
Scott Woodbury reviewed the matter. He said the Company's concern was the length of time required to process a rate case. It took approximately one year for the interim order. It was because the first filing was inadequate. Staff feels no adjustments are needed to the interim order and the Commission should make the interim order final. Staff will continue to work with the Company.
Commissioner Smith then made a motion to close the case. Vote taken; carried unanimously.
Brad Purdy's January 6, 2000 Decision Memorandum re: Case No. IPC-E-99-13 Application for Authority to Fund Its Continuing Participation in the Northwest Energy Efficiency Alliance, Inc. (NEEA)
The purpose of the present application is to determine: (1) Whether it is in the public interest to authorize Idaho Power to commit to participation in NEEA for the years 2000-2004, and (2) If NEEA participation is in the public interest, then how should the Company's expenditures be funded. If the answer is yes to participation, funding can be handled in a separate proceeding. Staff agrees that modified procedure is appropriate. This is a matter of policy that does not require an evidentiary hearing. If anyone objects to modified they can so state.
Commissioner Smith said she would propose that the Commission say it encourages participation in NEEA and we don't need two stages. We have a letter from the Industrial Customers of Idaho Power Company. So alternative scenarios can be discussed by those customers and NEEA, for different ways of managing contributions from our state but wish we would state that we encourage participation in NEEA and not have a separate proceeding to say that one more time.
Commissioner Kjellander said he appreciates what Commissioner Smith said, but he wasn't willing to go that far. Did have a question - if Idaho Power Company had indicated what the deadline was for signing the five-year contract?
Brad Purdy responded the Company signed the Memo of Commitment based on the exception that if it doesn't get approval from the Commission, it they can back out.
Commissioner Smith then made a motion that the Commission put the matter out for modified procedure for a 45 day comment period.
Commissioner Hansen called for discussion on the motion.
Commissioner Kjellander asked for clarification, was Commissioner Smith's statement part of the motion?
Commissioner Hansen said he took that as discussion.
Vote taken on the motion: motion carried unanimously.
Brad Purdy asked for clarification. Said when Commissioner Smith indicated support for continued participation in NEEA, should that be part of the notification?
Commissioner Smith replied - commentors are free to comment on whether, as well as how.
Birdelle Brown's January 6, 2000 Decision Memorandum re: Petition from Residents of Melba, Idaho requesting EAS to Marsing and Homedale Submitted December 28, 1999.
Birdelle reviewed the matter. She had submitted priority information to the Commissioners. Question is: should the Commission open an investigation to look at this EAS?
Commissioner Kjellander made a motion that a case be opened and take all the time necessary to assure that we have enough information to make an adequate case.
Vote taken on the motion: carried unanimously.
Scott Woodbury's December 29, 1999 Decision Memorandum re: Hayden Pines Water Company - Certificate Cancellation.
Staff recommended cancellation of the certificate and closing of the cases.
Commissioner Hansen made a motion to cancel Certificate No. 281; vote taken; motion carried unanimously.
Decision meeting was adjourned and Commissioners went into FULLY SUBMITTED MATTERS - No. 8 Brad Purdy's December 22, 1999 Decision Memorandum re: In the Matter of the Joint Application of CenturyTel for Rate Rebalancing. (Held from December 28, 1999 Decision Meeting).
Commissioner Marsha H. Smith led the discussion as she was the case chairman. Said her first question was: what kind of facilities were in the different exchanges? Was curious about that; what do these people have?
CenturyTel representative said single party service (with the exception of Salmon). There are three different service areas. (1) Salmon, Northfork, Leadore; Grandview, Grasmere, Riddle and (3) Richfield is by itself Others are contiguous.
Other question was: EAS - in other cases Commission has implemented EAS with raterebalancing. What was the Company proposing on that?
Balancing three objectives - reduction in access charges ($900,000) and at the same time modernizing the rate structures and offsetting reduced access revenue partially. (To do so without raising local rates out of sight.) So the company stopped at threshold.
Commissioner Smith had a concern going to $21.28. Thought it should be $22.00 because statewide average rate is going to change. Other companies have been brought into EAS calling areas with a rate of $24.10. Seemed to her where Mountain Home was large, Boise was not insignificant either. Thought Treasure Valley should be given to Grandview, Grasmere, Riddle for $24.10. Expanding to include Treasure Valley was about $100,000. (In staff comments). Boise only is $4.00;rest of the region is $3.50.
Company rep asked whether it should be company-wide? Said the numbers he had were slightly less than that - $5.90 is the company number.
Commissioner Hansen said from the comments it is overwhelming that Grandview wanted Boise Valley. Said they would be right back in here if they didn't get it. Asked if that included Richfield calling Magic Valley area?
Response was it did. That was in the original proposal.
Company: go up to $24.10.
Then to the extent it didn't make up for the $100,000, that that be made up by not taking the access rate all the way to 6 cents.
Joe Cusick suggested defining the Treasure Valley - U S West is without Payette/Weiser.
Commissioner Kjellander said he thought the Commissioners should see the numbers on that.
Commissioner Hansen asked by making this change, what does the company see?
Estimated less than a penny on access.
Joe Cusick asked how the rates would affect number consolidation?
Commissioner Kjellander questioned wording in the proposal - permanent switching rates, etc., asked what that meant?
Company rep said it also implements options - transport restructuring.
This is modernizing. Gives them more options.
**Look at the whole Treasure Valley at $24.10; and see what has to be done with access.
Other issue is business rate: are now in an age where the industry is trying to equalize the residence and business.rates.
Company rep said the company's general approach is to see the gap closed between residential and business, also.
Commissioner Kjellander said based on where we are at today, it seemed likely adjustments for residential and business seemed to make sense. Wasn't sure we are going to see any quick-change in the code. Hate to think based on the current environment it wasn't too far out of line on business and residence.
No EAS for Salmon.
Commissioner Smith said she didn't want to give them $24.10 but more than $21.28 - perhaps $21.75. There needs to be some cushion there.
Local Measured Service.
Commissioner Kjellander said yes. Staff recommendation is that there be a campaign to let people know it is out there, also the stipulation that there be a trial period where they can move back if they don't like it.
Joe Cusick commented in other cases there is enthusiasm for LMS and then it dies out, realistically it is not a big seller. Commented there is internet access in the area.
Rural Rate Additive - no. Thought it was premature at this time. Don't want to see the $3 residence and $6 business proposed here.
$3.50 for everyone was a wash.
Commissioner Smith asked - does this mean people who now pay mileage and live less than one mile out will have a raise?
Response was yes. But the majority will see a decrease.
Commissioner Smith suggested looking at the zone maps. Would like something that makes sense from cost perspective of providing phone service. Would like the reassurance that someone has looked at that.
Billing detail typically would have a separate charge.
Commissioner Kjellander asked what a partial minute would cost?
Joe Cusick thought any part of a minute was a minute.
Elimination of touchtone.
Directory assistance - 50 cents per call, none free.
Was decided the Commissioners would like more information on zone charges before they make a decision on that.
Commissioner Hansen asked about implementation of EAS. Company said it would coincide with rate change. Anticipate one year for EAS implementation.
Joe Cusick said the Commission would like the company's best guess on Magic Valley and Treasure Valley EAS.
Commissioner Smith would like to see a map showing how many customers fall outside the "city limits".
Meeting was adjourned.
Dated at Boise, Idaho, this 21st day of January, 2000.
Myrna J. Walters
Commission Secretary