20010305.min.doc

MINUTES OF DECISION MEETING
MARCH 5, 2001 - 1:30 PM

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

Commissioner Hansen called the meeting to order. The first order of business was approval of items 2-8 on the CONSENT AGENDA. Commissioner Hansen asked if there were any questions or discussion on any of the items. Commissioner Smith stated that regarding item 6, she wanted to be sure that it is noted that the franchise fee being implemented by the City of Fruitland is simply accepted for filing by the Commission, and it is the City of Fruitland that has decided to impose that cost on the customers. There was no further discussion. Commissioner Hansen made a motion to approve the Consent Agenda items with Staff's recommendations. A vote was taken on the motion and it carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Wayne Hart's February 22, 2001 Decision Memorandum re: Cambridge Telephone Company Tariff Advice No. 01-01—Adding New Services, Increasing Rates for Duplicate Directory Listings.

Mr. Hart reviewed his Decision Memorandum. There were no questions or discussion. Commissioner Kjellander moved for approval of the tariff advice and the motion carried unanimously.

Doug Cooley's February 28, 2001 Decision Memorandum re: Verizon Northwest, Inc.'s Advice No. 01-02—Offering Call Waiting and Cancel Call Waiting as a Combined Service.

Mr. Cooley reviewed his Decision Memorandum. Commissioner Kjellander asked Mr. Cooley if Verizon's prices are consistent with what Qwest charges in Idaho. Mr. Cooley replied that he had compared Verizon's prices to Qwest North's prices and found them to be comparable. Commissioner Kjellander then asked him what percent of Verizon customers who currently use call waiting do not subscribe to cancel call waiting. Mr. Cooley said he didn't have the exact percentage but he thought it was probably over half, so it is a fairly popular service. Commissioner Smith made a motion to approve Verizon's Advice No. 01-02. There was no discussion on the motion. A vote was taken and it passed unanimously.

11. John Hammond's March 2, 2001 Decision Memorandum re: In the Matter of the Application of Idaho Power Company for Authority to Institute a Pilot Program to Allow Irrigation Customers to Take Electric Service at Time-of-Use Energy Rates. Case No. IPC-E-01-6.

Mr. Hammond reviewed his Decision Memorandum. Commissioner Hansen asked why the company is limiting the number of participants in the program to a maximum of 300 and how many could participate if there were no limitations put on it. Mr. Hammond said he wasn't sure of the company's reasons for limiting it to 300 participants, although he thought it is because it is a pilot program. He deferred to Idaho Power to answer the questions. Jeannette Bowman of Idaho Power Company responded by saying participation is limited because it is a pilot program and there are personnel constraints in operating the program. She said each one of the irrigation meters will need to be changed to a time-of-use meter, and there are four possible types of meters that could be used to replace the demand meters that irrigation customers currently use. She stated the company will need to make at least two trips to the customers' farms to assess and change out the meters, so they had to put a limit of 300 participants on the program because that's about all their metering personnel thinks it can handle. Commission Hansen asked if the program could be expanded in the future if it proves to be successful, and Ms. Bowman replied in the affirmative. Commissioner Kjellander asked if the irrigators are deep well pumpers. Ms. Bowman replied they are not looking at any single group and have opened it up to all irrigation customers. Commissioner Smith responded to Commissioner Kjellander's question and stated the program would be limited to people who pump from wells because if farmers are in an irrigation district, they order water for 24 hours, and they can't order water only between 9:00 p.m. and 9:00 a.m. because the water system doesn't work that way. She stated farmers have to put their card out 24 hours in advance and they can only turn the water on in 24-hour blocks for the number of days they have signed up for—water can't be ordered for just a period of the day. Commissioner Smith said it would seem possible that a larger customer could participate in both the energy buy-back program for some of their meter locations and in this program for other locations, so she didn't think it ought to be exclusive. She stated she would be interested to know, and maybe the Staff could find out and file in its comments, what the rationale would be for limiting customers to one program only if they have numerous meter locations and would be eligible depending on meter locations for more than one program. Commissioner Smith made a motion to process Idaho Power's application for the pilot program for time-of-use at irrigation meters in an expedited manner by using modified procedure with a sixteen-day comment period, which would necessitate the Commission suspending the application beyond March 23rd to March 30th. There was no discussion on the motion. A vote was taken and it carried unanimously.

John Hammond's March 2, 2001 Decision Memorandum re: In the Matter of the Application of Pacificorp for Authority to Acquire Reductions in Electrical Demand and Associated Consumption of Electrical Energy from Irrigation Customers. Case No. PAC-E-01-4.

John Hammond reviewed his Decision Memorandum. Commissioner Hansen stated he was concerned about one aspect of the program relating to how the Company arrived at the qualifying irrigation rate of 8.5 cents. He stated another company was proposing 10 cents and the Commission has heard from other utilities that have made suggestions up in the range of 12 cents—the prices are all over the board. He said he wanted Pacificorp to explain why it is in the best interests of its customers to use 8.5 cents.

Commissioner Smith noted the Commission has already received one comment on the Application from the Idaho Irrigation Pumpers Association, urging the Commission to consider the matter expeditiously but also expressing doubt that Pacificorp's program with the fixed 8.5 cents will be well used or well received by customers. She added that she thought the ten-day comment period was o.k. but questioned why 14 days couldn't be given, suspending it until the 30th. Mr. Hammond replied that in looking at a hearing schedule, Staff was proposing the matter could possibly come up by the 19th and that is why the shortened 10-day period was proposed, although Staff is willing to move in whatever direction the Commissioners see fit.

Commissioner Smith said she felt 10-days is pushing it too fast, and the growing season in that part of the state is behind the season here in Ada County, so the extra week of moving from the 19th to the 26th will not foreclose anyone from the decision-making process. Commissioner Hansen stated he recalled from living in southeastern Idaho that in most of Pacificorp's service area, you can hit someone with a snowball pretty much all through March. Commissioner Kjellander made a motion to expedite the process using modified procedure with a 14-day comment period. A vote was taken on the motion and it carried unanimously.

John Hammond's March 2, 2001 Decision Memorandum re: In the Matter of the Application of Avista Corporation dba Avista Utilities for an Order Approving an Electric Energy Buy-Back Program for Pumping Schedules 31 & 32 Customers. Case No. AVU-E-01-04.

Mr. Hammond reviewed his Decision Memorandum. Commissioner Kjellander stated he wasn't as concerned with the shortened comment period in this case because of the small number of customers who will be participating. He made a motion that the matter be processed under modified procedure with a ten-day comment period. A vote was taken and it passed unanimously.

Lisa Nordstrom's March 2, 2001 Decision Memorandum re: In the Matter of the Idaho Power Company Application for a Refundable Emergency Energy Charge for the Recovery of Extraordinary Power Supply Expenses. Case No. IPC-E-01-7.

Ms. Nordstrom reviewed her Decision Memorandum. Commissioner Hansen commented that he felt the increase requested by Idaho Power is huge and the Commission needs to make sure it looks at it carefully, allowing enough time to conduct audits and turn over every stone in order to look at the prudency of the Company's power purchases and conservation policies.

Commissioner Smith stated that she agreed with Commission Hansen. She noted that in her tenure at the PUC, a request such as this one is unprecedented, and she agreed the Commission needed more time to consider it. She stated the Commission has had a policy not to award multiple rate changes in a short period of time and therefore it would be preferable if somehow the PCA could be considered together with the emergency energy charge. She made a motion to suspend the matter until May 1st and noted she hoped the financial community didn't think the Commission is pushing the Company into bankruptcy. She stated the Commission will audit the company's records, look at its transactions with the utmost care, and conduct at least three workshops throughout Idaho Power's service area. She noted the issue as to whether or not an evidentiary hearing will be needed would be reserved until later. She encouraged the Company to file its PCA as soon as possible.

Commissioner Kjellander stated he was in full support of the motion and it made good sense to bring the two pieces of the picture—the PCA and energy charge—together. He said it would cause less confusion and make the workshops more meaningful to be able to consider both at the same time as well as drive home the reality to customers as to just how severe the situation is.

A vote was taken on the motion and it passed unanimously.

Commissioner Hansen then adjourned the meeting.

Dated this ____ day of April, 2001.

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COMMISSION SECRETARY
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