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Home My WebLink About20000831.min.docMINUTES OF DECISION MEETING AUGUST 31, 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 order of business was consideration of the items under MATTERS IN PROGRESS. John R. Hammond's August 31, 2000 Decision Memorandum re: In the Matter of the Application of Avista Corporation dba Avista Utilities--Washington Water Power Division for an Order Approving a Change in Natural Gas Rates and Charges. AVU-G-00-3. John reviewed the decision memorandum. Avista is requesting an increase of $9,941,262 or 29.04%. Notice of Modified Procedure set a comment period through August 30, 2000. John set out the requested changes. Company is proposing no adjustment to tariff Schedule 155 rates. Staff agreed with that position. Indicated that the numbers set out for Schedule 150 were incorrect in the decision memo. Gave those new numbers. Commissioner Hansen asked if the .31109 was the cost of purchasing gas only? Madonna Faunce responded that it also included transportation and commodity costs also. John said the Consumer Assistance staff had made some recommendations. There is concern about the notices to the customers, for the rate increases. There has been a problem in the past regarding notice. Staff will review those in the future. Commissioner Kjellander said the consumer notice troubles him. It should be included in the bill. Who is to say that the notice gets the point across. The Commission needs to do a little more policing on that issue. Think it would be appropriate to have Avista look at the Int. Gas tracker order. Point out some of the options they are working through. Other point is, these are still some of the lowest gas rates in the country. Asked Terri Carlock if that was something that still could be said? Terri responded that would be the same characterization at this time. Commissioner Kjellander asked if most of the companies have gone through this already? Terri said companies that use the trigger mechanism would be saying it already. Those who do not, most all utilities are raising their prices through one mechanism or another. Commissioner Hansen asked - would you say then that $3.11 he questioned earlier, this was the wellhead, plus transportation costs, etc., is that still below the current market right now? Terri responded - yes. Commissioner Hansen asked how far below? Terri said $100 on the regular market and as high as $3.00 on the spot market. Commissioner Hansen said in reality, the cost of purchasing and transporting gas has gone up drastically and we don't have much choice. Are going to have to hope it comes down or the price won't survive very long. Terri said the deferral would have to be picked up later on. There were no further questions. Commissioner Hansen made a motion that the changes in natural gas rates be approved and also in this motion say that the Commission advises the company to make available to its customers the levelized payment program, programs for the needy and anyother mechanisms. Commissioner Kjellander said to provide additional information to customers through brochures or any method the Company can employ. It might be worthwhile for the company to take a look at what Intermountain Gas is doing so there would be consistent notice to all the customers in Idaho. Don't know the full extent of the problem that staff has with notice. Would certainly hope that the Company wouldn't just let customers find out when the first bill shows up in the winter, that they don't have any options. Commissioner Smith said she received several e-mails and we have many letters, and she would request that our order specifically note that this increase is for increased gas cost only and note it is not used for CEO compensation and any expense for particular investments, or other management decisions questioned in this case and would hope that while the cost has remained constant and has actually decreased in the past, that the Commission can't just grant an inflationary 2 or 3% increase, because the cost of gas has more than doubled. Would like the order to be very specific on what the increase is for. Those other concerns are a separate matter. Commissioner Kjellander said even in the last week, when we looked at wellhead prices, Commissioner Hansen mentioned there was a 25 cent jump just in the last week. Let people know this isn't just a one-time phase in. This could be something that we see much more frequently. Doesn't seem to be anything on the horizon to show otherwise. Vote taken on the motion: motion carried. Weldon Stutzman’s August 29, 2000 Decision Memorandum re: Case Nos. Cen-T-99-03 and CGS-T-99-04; Qwest’s Motion for Clarification of Final Order for Century Tel of Idaho and Century Tel of the Gem State. Weldon Stutzman reviewed the matter. Commissioner Kjellander asked if anything but two-way was being considered? Weldon said he thought it was just a lack of specificity in the order. Commissioner Kjellander asked if that changed anything in the order? Weldon said the evidence considered was for two-way. Commissioner Smith asked where have they been for months? Now suddenly U S West says they need 3 additional weeks. Weldon said he thought the implementation date is October 15. Commissioner Smith commented – and U S West wants the Commission to wait three weeks from then. Commissioner Kjellander asked what was the next stall tactic going to be in implementing EAS? They had access to the complete record. This today appears to be nothing more than a stall tactic. Commissioner Smith made a motion that the order be issued immediately and the implementation date is still October 12 and we expect them to be ready. Vote taken on the motion; motion carried. Dated at Boise, Idaho, this 20th of September, 2000. Myrna J. Walters Commission Secretary 20000831.min