20000508.min.doc

Minutes of Decision Meeting
May 8, 2000 - 1:30 p.m.

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

First item of business was approval of the Minutes of the March 21 and 27 Decision Meetings. The minutes had previously circulated to the Commissioners and corrections had been made. Commissioner Hansen made a motion to approve the minutes; vote taken; motion carried.

CONSENT AGENDA

Items 2 through 4 were listed on the Consent Agenda.

Commissioner Hansen asked if there was any discussion on any of these items. Hearing none, he made a motion to approve staff recommendation on all three items. Vote taken: Motion carried.

MATTERS IN PROGRESS

Cheri C. Copsey's May 5, 2000 Decision Memorandum re: In The Matter of The Application Of Idaho Power Company For Authority To Implement The Power Cost Adjustment Rate For Electric Service To Customers In The State of Idaho For The Period May 16, 2000 Through May 15, 2001; Case No. IPC-E-00-6.

There were four questions before the Commissioners, set out in the decision memorandum.

Commissioner Hansen called for discussion on the questions.

Commissioner Kjellander asked if a motion was appropriate, for issues 1 through 4 separately or would Commissioner Hansen like one motion for all four issues.

Commissioner Hansen said he thought each question should be handled individually. Would call for comments first.

Commissioner Smith commented - having watched the PCA spread since 1993, we know that bad years do come and this is to smooth out the ups and downs in company earnings and customers reap the benefits of good years. The PCA is operating as expected by the Commission. We intended for that to operate automatically. She made a motion to approve Idaho Power Company's application for PCA and related tariffs effective for bills on and after May 16 through May 15, 2001.

Commissioner Hansen commented that even in a poor water year as projected this year, think we should note that these rates are still some of the lowest in the country for an investor-owned utility.

Commissioner Kjellander said PCA seems to be working well. Yes, there is a bad year on occasion, that is why you have a PCA. It is a good program and seems to be working.

Commissioner Hansen said there is a motion before the Commission. Motion carried.

Commissioner Kjellander made a motion that the $70,287.60 be carried in Idaho Power's balancing account and true-up in net year's PCA.

Vote taken: Motion carried.

Question 3. Does the Commission wish to initiate a new case to investigate the appropriate rate-regulatory structure for Idaho Power?

Commissioner Hansen said he didn't think there are issues forthcoming yet that would merit a new case on changing this structure. He would move that the Commission deny this request. Vote taken: motion carried.

Does the Commission wish to order Idaho Power's next application for a rate change be returned if it fails to give adequate customer notice?

Commissioner Kjellander said on that issue, he sees where Bev Barker is coming from and appreciates the comments. But the company has been made aware of staff's concern in this proceeding and he believed we should reject that recommendation of staff. So moved. Vote taken: motion carried.

Meeting was adjourned.

Dated at Boise, Idaho, this 15th day of June, 2000.

Myrna J. Walters
Commission Secretary