20000524.min.doc

MINUTES OF DECISION MEETING
May 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 and welcomed all in attendance.

First item on the agenda was Approval of Minutes From Previous Meetings - 1. Minutes of the April 3, April 12 and April 21, 2000 Decision Meetings. (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 5 were considered on the Consent Agenda. Commissioner Hansen asked if there were any questions on any of the items?

Commissioner Kjellander said on No. 5 - Scott Woodbury's May 22, 2000 Decision Memorandum re: Case No. INT-G-00-01 Purchase Gas Adjustment (PGA) Tracker $36.4 Million (28%) Revenue Increase--Surcharge, the tracker for IGC, when the Commission looks at people having vacation schedules, the low turn-out a public hearings, the comment period seems to be a better approach. Think it is the best approach to take since it is a tracker. Just wanted to point that out.

Commissioner Smith also commented; said the tracker has worked fairly well the last few years but now the Commission is faced with a 28% increase, which is pretty steep. (Should ask staff and parties to comment about spreading out the increase).

Commissioner Hansen said he agreed with Commissioner Kjellander on the procedure on No. 5 (IGC) and he would encourage staff and IGC to make the public aware that they can make written comments. Sometimes on written comments the public doesn't understand that they can participate that way. Would encourage staff in their news release to make the public aware of that.

There was no further discussion.

Commissioner Hansen made a motion to approve the items on the consent agenda, with staff recommendations.

MATTERS IN PROGRESS

Scott Woodbury's May 17, 2000 Decision Memorandum re: Case No. PAC-E-00-03 (Pacificorp) Nu West Service Agreement (June 8, 1998).

Scott Woodbury reviewed the matter. Deadline for comments was May 16. Staff and Solutia were the only commenting parties. Staff recommends approval. Company and staff agreed to an effective date of July 1, 1998.

Commissioner Kjellander made a motion to approve the application with an effective date of July 1, 1998. With regard to the failure to submit, think it is sufficient to add language about approval and would include that the Company is to file a schedule summarizing contract rates.

Commissioner Smith said with regard to requiring Commission approval for the contract, you would want it to be effective between the parties; but maybe not have rates effective until after Commission approval. Requiring Commission approval may do disservice to the parties. Wondered if the Commission could work on wording, said she then could support the motion; the question boils down to rates anyway. Thought there might be other provisions we might have interest in but don't want to go back and question other aspects.

Commissioner Kjellander said the Commission may need to include contract language but also needed to assure the parties that the PUC wouldn't influence their negotiations but would maintain approval authority. Motion was carried.

Scott Woodbury's May 18, 2000 Decision Memorandum re: Case No. AVU-E-00-02 (Avista) PCA Rebate ($2,364,000) Order No. 28377(Interlocutory) Petitions for Reconsideration.

Scott reviewed the matter. Stated what Order No. 28366 said. It is procedure Company seeks reconsideration on. Company comments to providing its analysis for the three resources. Subsequent to the filing of the petition, staff has talked to the Company. Agreed that handling this by separate case docket to consider PCA methodology and the three provisions and that all that would remain in this, would be to issue a final order.

Commissioner Hansen said - as he understands, they are willing to go ahead and rebate the 2.3 million and open a case to discuss future mechanism on PCA.

Scott Woodbury said the Company is not in total agreement with staff but they do agree a separate docket should be opened to consider that.

Commissioner Smith made a motion that the Commission deny the petition for reconsideration finding that it would be more appropriate to consider issues or changes to the PCA for Rathdrum, Kettle Falls and Centralia in a separate case and the rebate be approved effective August 1 and defer other issues to the separate proceeding. Vote taken on the motion; carried.

Scott Woodbury's May 18, 2000 Decision Memorandum re: Case No. UPL-E-00-01 (Pacificorp) BPA Regional Exchange Credit--Adjustment.

Scott reviewed the matter. Said it was processed pursuant to modified procedure. Only staff commented.

Commissioner Hansen made a motion to approve the Company's application June 1, 2000. Vote taken; motion carried.

Commissioner Hansen introduced and welcomed the new auditor, Alden Holm.

Meeting was then adjourned.

Dated at Boise, Idaho, this 26th day of June, 2000.

Myrna J. Walters, Commission Secretary

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