HomeMy WebLinkAbout20001020.min.docMINUTES OF DECISION MEETING
OCTOBER 20, 2000 - 1:30 P.M.
In attendance were Commissioners Dennis Hansen, Marsha Smith, and Paul Kjellander.
Commissioner Hansen called the meeting to order. He asked if there were any questions or if the Commission would like to discuss anything on the CONSENT AGENDA, Items 1 -3.
Commissioner Smith stated she had a question on Item 2. She said in the staff's comments there was a reference made to a letter from TDS but she didn't see mention of it in the Decision Memo. John Hammond replied that staff was provided with a clarification to the interconnection agreement but it was apparently not provided to the Commissioners. He said if the Commissioners would like a copy of the letter he could provide it for them. Commissioner Smith asked if the additional information changed the staff's recommendation. John replied that it did not.
Commissioner Hansen moved approval of the Consent Agenda items with the staff's recommendations. A vote was taken and the motion carried unanimously.
MATTERS IN PROGRESS
4. Terri Carlock's October 18, 2000 Decision memorandum re: Midvale Telephone Exchange Inc.'s Application for Debt Guarantee Authority. Case No. MID-T-00-1.
Terri Carlock reviewed her Decision Memorandum and the reasons she felt the need for additional reporting requirements to protect Idaho customers. She stated that if the item is approved, reporting requirements should be included so the staff can monitor actual RTFC covenant requirements and to also assure that none of the costs will be passed on to Idaho customers. She said that if for some reason there is a default of the $480,000 loan, any cost item that goes to Midvale Telephone will be booked below the line in order to be a shareholder responsibility rather than a responsibility for Midvale's Idaho customers.
Commissioner Hansen asked Ms. Carlock that if a default should occur, is the Commission guaranteed it will be the shareholders' responsibility and not the ratepayers' responsibility? Ms. Carlock replied that she believed if the Commission puts it in the order that any default or cost item be booked below the line, it could then be traced through the reporting requirements, making sure any default does not get passed on to Idaho customers. Commissioner Hansen then questioned Ms. Carlock if she was comfortable that the Idaho customers will not bear any of the cost of this transaction at all. Ms. Carlock said at this point, she was not comfortable but it would be something that they would follow through in future audits of Midvale. She said she would expect to see in future audits allocations of costs for this loan but staff will follow through in any audits conducted.
Commissioner Kjellander asked that if staff's recommendations are adopted, would the IPUC have the capability of protecting Midvale's Idaho customers in a future rate case, if it felt there was a need to do so? Ms. Carlock replied that at this point, there is no reason to believe M & L will default, but with the conditions, she believed the Commission will have a means to guarantee the costs won't be passed on to Idaho customers.
Commissioner Kjellander then moved for approval of staff's recommendations.
Commissioner Hansen asked if there was any discussion on the motion.
Commissioner Smith asked if there had been any feedback from the company as to its ability and willingness to implement the suggested conditions. Ms. Carlock stated she didn't have feedback directly from the company but she did from the company's attorney, who has said they will meet whatever requirements are needed in order to comply.
A vote was taken and the motion was approved unanimously.
The Decision Meeting was then adjourned.
Dated this 24th day of October, 2000.
Jean D. Jewell
Commission Secretary