20000424.min.doc

MINUTES OF DECISION MEETINGApril 24, 2000 - 1:30 p.m.

In attendance were Commissioners Dennis Hansen, Marsha H. Smith and Paul Kjellander. Commission President Dennis Hansen called the meeting to order.

First to be considered were the matters on the CONSENT AGENDA - Nos. 1 through 7.

Commissioner Smith commented that she was disappointed that the Afton exchange was now owned by Citizens and not Silver Star. She then made a motion to approve all the items on the Consent Agenda. There was no discussion on the motion; it carried unanimously.

MATTERS IN PROGRESS

George Fink's April 11, 2000 Decision Memorandum re: Stoneridge Water and Sewer Company; Case No. GNR-W-90-1; Order No. 28206.

George reviewed the matter. Spoke to the $2,000 proposed hook-up fee. Staff questioned it. Company responded with cost estimate. Staff reviewed the figures. Explained to the company that the intention was installation of new customer lines. Staff asked for a revised estimate. Company is holding fast to their $2,000 proposal. Staff came up with $522. Staff excluded landscaping, etc. In light of this, Commission decision could be to approve or not approve staff's $522 or approve a different charge. Also asked Commissioners to decide the effective date.

Commissioner Hansen called for questions. He asked if anyone from the staff actually looked at the subdivision.

George responded that Bob Smith had.

Commissioner Hansen said the memo mentions 200 lots, yet in 1997 they only had 29 connections. Asked how many are connected now?

George responded 30. In the last two years they have only connected 1 new customer.

Bob Smith said these home are adjacent to the golf course. Said it was a golf resort development with homes located around the greens. It is only partly developed; have planned for 160 lots. Only have developed a small portion of the potential.

Commissioner Hansen asked if landscaping would be a key factor in this, versus just an ordinary subdivision? Could you have additional cost for landscaping?

Bob Smith said from his visit at the location, all of the homes are adjacent to the golf course. Discussed this with George, homes have been landscaped; there are pine trees and bushes, but there is no landscaping on the vacant lots.

George said staff used United Water cost estimates ; in particular Barber Water Co. Staff reviewed the list of hook-up fees for Commission-regulated utilities. That is where staff came up with roughly 250 to 845. There was one exception - a subdivision in northern Idaho, Rickel Water. It is based on actual cost of installing water service.

Commissioner Hansen asked what documentation the Commission has for number of hours for installation? Do we have data that backs up the charges?

George replied the people on site are doing this.

Commissioner Kjellander asked George about the comparisons? Said George talked about backhoe and whether or not they have one. There seems to be some dispute if they have one that works and what it costs to operate one, why is that? Did we find out they have one that works?

George responded. Said apparently they have one, but it doesn't work. It appeared to staff they were making their numbers fit the estimate; backhoe costs, etc. Staff spoke to the fact that they have a backhoe on site and it is needed for golf course maintenance also. That is why staff deferred the other costs.

Commissioner Kjellander said - lets say it is not repaired and they decide to rent one, is there any calculation that would include the cost of rental, etc.?

George replied - the on sight person was offering to provide more information but the Salt Lake City office decided to stay with the original numbers.

Commissioner Kjellander asked George what information he thought the Commission would get out of the Company? If we were to take the second question, did he think we could get anything different from the company?

George wasn't sure.

Commissioner Kjellander asked George if staff had enough information to make a recommendation to the Commission? Seems like staff is willing to look at more information from the company. Do we even know if the backhoe is in disrepair?

George said there are lots of variables. Company has expressed concern that the lines have been in place for 20 years.

Commissioner Smith said her questions mostly have been asked. It just seemed to her United wasn't a good comparison for this Company. Seems this is a different kind of water company than United Water.

Bob Smith commented it was more remote, it is south of Priest River. The community of Blanchard is a next door neighbor. Priest River is the largest community that would have equipment. Company does travel to Coeur d'Alene for their plumbing supplies. It is a logging area. There would be heavy equipment available. Asked if he could elaborate on the lines. Said there are fire hydrants on the golf course.

Commissioner Smith said it seemed like they were concerned about other utility lines. Asked if Bob recalled if they were above ground? Said she was deducing that from the company's contact with other utilities.

Bob Smith said there is a dig line in the area.

Commissioner Smith said she thought the Commission could benefit from more information but she was concerned about the building season arriving without an approved charge, her numbers are just as arbitrary. Thought staff was a little low. So she constructed her own number - four hours for backhoe operation gives them $800 for utility and water line location and came up with a charge of $825. Could approve this and tell the company if they can substantiate a higher charge it will be considered but until that time that is what we have decided.

Commissioner Kjellander said he was curious about the backhoe situation.

Commissioner Smith explained that she gave them 4 hours. Said if they wanted to make it $925 she could go with that.

Commissioner Kjellander agreed.

Commissioner Hansen reviewed the situation. Thought renting might be more feasible for one hook-up ever two years. Said he would make a motion that the Commission approve a connection fee of $925.00 for this Company and invite them if they can demonstrate reasons for a higher fee, they can do that. Notify the Company that if they are not satisfied with that they can appeal. Would propose an effective date of April 25.

There was no discussion on the motion; vote taken; carried unanimously.

Scott Woodbury's April 21, 2000 Decision Memorandum re: Case No. AVU-E-00-02(Avista)PCA Rebate ($2,364,000).

Scott Woodbury reviewed the matter. Staff supports the requested deferral and recommend that interest accrue for the 3 month period. Staff reminded the Company that customer notice in this case was once again deficient. He pointed out staff and company differences. Staff is not proposing in this case that there be an adjustment to the rebate but suggest that staff and the Company meet to discuss this matter further and bring it back to the Commission.

Commissioner Smith said she needed to clarify Scott's last statement - staff does not propose an adjustment for calculating this rebate?

Scott said yes, that there be an adjustment in the deferral account. Staff and Company are apart on this.

Commissioner Smith asked if staff was giving up on the argument that the adjustment for all months since the base be up here?

Scott said no. That would be a big chunk going into deferral.

Commissioner Kjellander asked Scott to recommend how he would deal procedurally with Rathdrum, Kettle Falls and Centralia? Separate proceedings? Separate cases?

Scott replied those are matters already in the calculation. He explained what the Company is proposing. Said he was unable to determine how Rathdrum should be handled at this time. On the other issues, it is outside Rathdrum and it would be appropriate for another case - Kettle Falls is wood-fired generation.

Commissioner Smith asked if there was any chance this could be resolved in 60 days?

Scott said he was hoping to bring it back by August 1.

Commissioner Smith asked the parties to update the Commission.

Keith Hessing said he was not sure how big the issues are that the company wants to bring in. May 5 is the Centralia date. They have concerns. We have Rathdrum. We can try to do it in 60 days.

Scott suggested the Commission could just choose at this time to defer implementation and up the effective date to August 1 from May 1 and bring it back.

Commissioner Smith made a motion that the Commission find it reasonable to use modified procedure; that it is reasonable to extend to August 1 to eliminate confusion and hopefully streamline billing procedures and direct the Company and staff to try and resolve the problems dealing with Rathdrum and Kettle Falls and Centralia. We did not remove Centralia from rate base. Thought it was status quo on that. That was just her observation; filed July 1 for an effective date of August 1. If staff was advocating appropriate months, there be an interest amount to consider. Vote taken: motion carried unanimously.

Meeting adjourned.

Dated at Boise, Idaho, this 24th day of May, 2000.

Myrna J. Walters, Commission Secretary.