20000821.min.doc

MINUTES OF DECISION MEETING
August 21, 2000 - 1:30 p.m.

In attendance were Commissioners Dennis Hansen, Marsha H. Smith and Paul Kjellander.

Commissioner Hansen called the meeting to order.

First item on the agenda was approval of Minutes from previous Meetings; July 1 and August 3, 2000.

Commissioner Hansen made a motion to approve the minutes; vote taken on the motion; motion carried.

Next to be considered were the matters on the CONSENT AGENDA; Items 2 through 17.

Commissioner Hansen asked if the Commissioners had comments or questions on any of the items on the Consent Agenda.

There were none, so Commissioner Smith made a motion to approve all items on the Consent Agenda. Vote taken on the motion; carried unanimously.

MATTERS IN PROGRESS

18. Status Report from Scott Woodbury re: PCA Trigger Exceeded--Avista Company Request to Delay Implementation of Rebate. Case No. AVU-E-00-07.

At prior decision meeting, staff was instructed to review the company numbers and bring the matter back to the Commission. Staff has now done that. They concur with the company's request.

Commissioner Smith then made a motion that the Commission delay implementing the PCA rebate and that the Commission wait a few months until the balance in the fund goes the surcharge direction.

Commissioner Hansen commented he thought that was a wise decision. Vote was taken on the motion; motion carried unanimously.

Cheri Copsey's August 8, 2000 Decision Memorandum re: In the Matter of Extended Area Service to the Boise, Meridian, Nampa, Caldwell, Emmett, New Plymouth, Weiser and Payette Exchanges in Idaho and the Ontario, Vale and Oregon Slope Exchanges in Oregon.

Cheri reviewed the matter. Said on May 31, 2000 the Oregon Commissioners issued an order saying there is a community of interest and requesting that a case be opened in Idaho. Question before the Idaho Commission now is "should a case be opened to consider this EAS"?

Commissioner Hansen commented - there have been no petitions or requests for any Idaho-Oregon locations.

Doug Cooley responded that some New Plymouth customers have voiced support but there is no petition.

Commissioner Kjellander commented – the Oregon decision appeared to be based solely on the premise that these areas are on the same time zones.

Doug said the Oregon staff found no community of interest. The Oregon Commissioners ignored that and established EAS based on a time zone.

Commissioner Smith said while there may be no formal petitions at this time, think the Idaho Commission has had some in the past and they have been denied. Don't want to deny anybody the opportunity to be heard. Also don't want to limit it to the exchanges mentioned. Would like to open a case exploring the appropriate calling areas for the communities of Ontario, etc. and look at any communities we want rather than specific cities listed.

Commissioner Hansen called for discussion.

Commissioner Kjellander said that since the Oregon Commission initiated this proceeding it might be reasonable to open a case here, but if we do, the scope of ours should be broadened.

Cheri Copsey asked the Commissioners about "broader", would that include Midvale and some of the other outlying communities we have already looked at?

Commissioner Smith said she would amend the motion to include the Treasure Valley Calling Area and east, including those areas bordering the Oregon border; whatever is there and whatever is reasonable. Vote taken on the motion; motion carried.

Birdelle Brown's August 20, 2000 Decision Memorandum re: Idaho Universal Service Fund--2000 Annual Report.

Birdelle stated that the matter she was here to discuss was the USF report for the year. Alyson Anderson, USF Administrator was present and available for questions. Her report was filed July 31. Gave a brief review of the report. Statewide average for residential is $17.31 per line and business $32.54 per line and .0545 per access minute. Toll minutes have decreased slightly more than anticipated. All indications show that there will be a decrease in disbursements next year. Reviewed the changes. Rural's EAS is the big unknown. That information probably won't be in until the upgrade is completed. Said the Administrator submitted three options. Birdelle reviewed those options. Said the Administrator's recommendation was that the fund be increased from 12 cents and 24 and .0035 per minute. Option 3 was: 14 cents; 26 cents and .0045 for toll minutes. This would provide $200,000 for Rural and leave the balance in the fund at $500,000 for any unexpected requests and non-payment for companies not paying . There are more companies but their consistent and timely payment into the fund has decreased. Don’t feel real secure about the money coming in. the Administrator has requested a cushion against inconsistencies.

Commissioner Hansen called for questions or discussion.

He then made a motion to accept Recommendation No. 3. Seemed the Commission liked to have that balance at $500,000. It would increase the rates from 12 to 14, residential and 24 to 26, business.

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

Doug Cooley's August 14, 2000 Decision Memorandum re: U S West's Advice No. 00-02-N and Transmittal No. 00-07-PL Adjusting the Equal Access Recovery Charge for Northern and Southern Idaho.

Doug reviewed the matter. Staff has not received any cost data but did receive a request to delay effective date. Staff recommends that the Commission delay the requested effective date for both of these filings and they also recommend that a cost docket be opened to review the total implementation costs and evaluate the EANRC recovery rate.

There was no discussion or comment by the Commissioners.

Commissioner Hansen made a motion to approve staff recommendation; vote taken; motion carried.

Weldon Stutzman's August 16, 2000 Decision Memorandum re: Case No. GTE-T-00-07; GTE's Tariff Advice No. 00-05; Proposed Tariff For Collocation Services.

Weldon reviewed the matter. Said the question for the Commission is whether or not the tariff should be rejected or if the Commission should issue an order continuing the expiration until January 29, 2001.

Commissioner Smith commented the last time this was on the agenda she asked why not approve it and said she would now make a motion that the Commission reject the GTE tariff and not have a hearing.

Commissioner Kjellander said he too was unable to see the wisdom at the time and sees it now.

Commissioner Hansen said he had no comment. Vote taken on the motion; motion carried.

Terri Carlock's August 18, 2000 Decision Memorandum re: Avista Application for Authority to Issue, Sell, Deliver and/or Guarantee Debt Securities; Case No. AVU-U-00-3.

Terri Carlock reviewed the matter. This ise an exemption request. She has reviewed the matter and recommends issuance of this amount of debt, but that Avista notify the Commission staff prior to the issuances.

Commissioner Hansen asked why "two" notches below existing levels?

Terri responded one change might be possible to the market. If there is more than one, the financial community would be alarmed.

Commissioner Kjellander asked if - given the Company's recent national problems, was there any impact on the bond rating on that? If so, what is the fluctuation?

Terri said there has has been no change in the bond rating.

Commissioner Smith made a motion that the Company be authorized to issue and sell the $500,000,000 in debt with the future exemption remaining in place unless subsequent events and changes warrant the exemption be ended; and Avista be required to informally file with staff before the issuance.

Motion carried.

RULEMAKING

Cheri C. Copsey's August 14, 2000 Decision Memorandum re: Negotiated Rulemaking--Proposed Revision of Operator Services and Pay Telephone Rules.

Cheri said after having looked through these and meeting with Qwest and calling the pay telephone association, thought it more appropriate to use negotiated rulemaking, with a workshop on September 27, 2000. It would then be brought back to the Commission to go forward with the rulemaking process.

Commissioner Kjellander made a motion that the Commission go ahead with staff recommendation to initiate a rulemaking and stay with the dates referenced by Cheri. Vote taken: motion carried.

Don Howell's August 17, 2000 Decision Memorandum re: Updating the Commission's Safety and Accident Reporting rules.

Staff is recommending that the Commission update its safety and accident reporting rules. Commission has adopted three codes. In addition, Commission has adopted Federal Pipeline Safety Code. Staff is recommending updating those. The National Electric Safety Code will be after 2001.

Commissioner Smith had a question - could the Commission update the OPS code to October 2000?

Don said these rules will be proposed October 4 so perhaps it was a possibility. They are actually published October 1 but we don't get them until December. He will check on the adoption date.

Commissioner Kjellander asked Don Howell about pipeline safety? From these pipeline safety rules, is there anything that stands in the way if we do decide to have an inspector?

Don replied no.

Commissioner Hansen made a motion to adopt the updated safety codes and regulations and the housekeeping amendments to its Safety Rules. Vote taken: motion carried.

Meeting was adjourned.

Dated at Boise, Idaho, this ____ day of August, 2000.

Myrna J. Walters
Commission Secretary