20000912.min.doc

MINUTES OF DECISION MEETING
September 12, 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 matter on the agenda to be considered was the CONSENT AGENDA.

Scott Woodbury’s September 8, 2000 Decision Memorandum re: Case No. AVU-G-00-2,l (Avista) Natural Gas Integrated Resource Plan (IRP) – Year 2000.

Scott Woodbury spoke to the details set out in the decision memo. He asked for a longer than normal comment period – 60 days. Mike Fuss is going to meet with the Company and would then be better able to comment on behalf of staff.

Commissioner Kjellander asked if there were any objections to the extension? Had he run it by the Company?

Scott Woodbury responded he had not run it by the Company but will do that now and will bring it to the Commissioners if there is a problem.

Commissioner Kjellander asked if the commission issues an order that may change later, are we okay?

Scott Woodbury said what he intended to do is issue notice of filing and put it out for comment and extend that comment period to 60 days?

Commissioner Kjellander said he could live with that.

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

MATTERS IN PROGRESS

Rick Sterling’s and Scott Woodbury’s September 7, 2000 Decision Memorandum re: Case No. EAG-W-00-1, Investigation of Eagle Water Company and its Ability to Provide Adequate Water Service to the Customers of Eagle Springs Estates Subdivision and Adjacent Certificated Area.

Rick Sterling reviewed the matter. Said the Commission directed staff to conduct an investigation and file a status report. The investigation was done and report was filed. Company installed a new booster pump July 11. It increased pressure by 20 psi. These pressures satisfied the minimum pressure requirements of DEQ. Eagle Water plans to dig a new well. Company is also planing for a new storage facility. Staff believes that the actions taken were appropriate. Pressure has increased. Staff agrees that a new supply and a storage reservoir would increase service. One of staff’s suggested requirements is providing quarterly reports to the Commission.

Commissioner Hansen asked about quarterly reports. Does the Commission require United Water and the other water companies to provide quarterly reports?

Rick Sterling said no. Staff made the recommendation because in the case of the new well, the Company has made fairly good progress, but the storage reservoir has been talked about for years. It never seems to get beyond the discussion stage. So staff recommended reports partly as a means of determining how serious the Company is in making these improvements.

Commissioner Hansen asked if the Commission ordered the Company to put in the storage facility?

Rick Sterling said the Commission has not. It will be a very expensive item that would increase rate base. They recognize the benefits of storage but they also recognize the risk for repayment.

Commissioner Hansen asked if Rick knew how much time would be required to furnish the reports?

Rick replied he thought it would take very little time. Didn’t think it would be that burdensome to the Company.

Commissioner Smith said she wanted to congratulate the staff for the way this matter was handled so speedily.

Commissioner Hansen called for the question. He made a motion that staff report be accepted and they continue monitoring the pressure improvements until the law irrigating season has ended and he would not in that motion, require quarterly reports. He called for discussion.

Commissioner Kjellander said he thought quarterly reports were necessary. This whole thing is about adequate water pressure, think we need some readily available information if it happens again. Thought the Commission needed to insure some progress has been made.
A report may tell the Commission the reservoir is the answer or is not the answer. These people were without water. Think we ought to have them file quarterly reports. With that he offered a substitute motion that the Commission go with staff recommendation, including a quarterly report.

Commissioner Smith said she could agree that some reporting is necessary but given this Company, think quarterly is pretty burdensome; so she would support the original motion but move to consider some kind of reporting, perhaps during the high-use season.

During the wintertime quarterly is burdensome. So she was voting in opposition of the substitute motion. Commissioner Kjellander voted yes; Commissioners Hansen and Smith voted no.

Vote taken on the original motion: Commissioner Kjellander voted no, Commissioners Hansen and Smith voted yes.

Scott Woodbury’s September 8, 2000 Decision Memorandum re: Case No. AVU-G-00-1, (Avista) Hamilton Street Bridge Site Hazardous Waste Clean-Up.

Scott reviewed the matter as set out in the decision memorandum. Company and staff agree that the issue of prudence of the expenses is something to be determined when the Company proposed ratebasing that amount.

Commissioner Smith commented the Company is preserving this because of the ice storm matter. Think some deferral is appropriate and would agree with some of the staff recommendations. Said she did not support Staff recommendation No. 6 and probably not No. 5. Think those are rate case issues and should be decided by the Commission when the Company files for recovery of those expenses. Said she also had questions on No. 3 and No. 4. Said she was inclined to think that no interest should accrue. Company didn’t respond to that, so she would agree with that. Had a question on why January 2001 was chosen. Was curious of the January 2001 date and what staff’s thinking was. Company didn’t respond to that either.

Kathy Stockton responded. Said it was just to coincide with a new financial year and the five years was to keep it from taking too long. It was just an arbitrary number.

Commissioner Smith said she thought the Commission had used these periods of time before and it forces the Company in for rate relief. Was just curious if staff was trying to force the Company into a rate case or does staff know something the Commissioners don’t know about whether they are planning to come in.

Kathy Stockton said she thought it was just because the amount was uncertain and if it got to be a large amount they could come in for a rate case but if not, it could be amortized in a short time and never be in a rate case.

Commissioner Smith said she would then support No. 4. Let the Company know the Commission isn’t going to drag this on and on. There is a reasonable amount of time.

There was no further discussion.

Commissioner Smith said she would make a motion that the Commission approve the booking of these expenses in the appropriate account and that the reasonableness of them be determined at a future date; that no interest accrue and that starting in January 2001 the current expenses be amortized over a five year period and subsequent accruals begin amortization.

Motion carried.

**Also ought to take the Company up on subtracting adding the gain from the sale of the facility from the account.

Wayne Hart’s September 8, 2000 Decision Memorandum re: Tariff Revisions for Troy and Potlatch Adding Home Intercom Advanced and Do Not Disturb Services and Per-Use Charges for Call Forwarding and 3-Way Calling; Tariff Advice Letters Dated August 29, 2000.

Wayne Hart reviewed the matter. Staff supports the Company’s request.

Commissioner Hansen called for discussion or comments. He then made a motion to approve the tariff advice effective September 29. Vote taken; motion carried.

RULEMAKING

Amendment to Gas Pipeline Safety Rules. Case No. 31-1101-001. (Don Howell)

Don Howell reviewed the matter. Staff recommends incorporating the federal register changes. It is a problem of timing only, that brought about the required amendment.

Commissioner Hansen made a motion to include the changes in the docketed rulemaking.

Vote taken on the motion; motion carried.

Decision Meeting was then adjourned.

Dated at Boise, Idaho, this 21st day of September, 2000.

Myrna J. Walters
Commission Secretary