20010430.min.doc

MINUTES OF DECISION MEETING
APRIL 30, 2001 - 1:30 PM

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

Commissioner Kjellander called the meeting to order. The first order of business was APPROVAL OF MINUTES of March 5, March 12, March 19 and March 28, 2001 Decision Meetings. The Commissioners gave their approval of the minutes.

The second order of business was consideration of items 2 and 3 on the CONSENT AGENDA. There were no questions or comments and the items were approved.

The Commissioners next considered the items under MATTERS IN PROGRESS:

Michael Fuss' April 24, 2001 Decision Memorandum re: Pacificorp Case No. PAC-E-01-07; Advice No. 01-06—Schedule 2020-20/20 Customer Challenge Program Rider.

Mr. Fuss reviewed his Decision Memorandum. Commissioner Hansen asked if the company has done a survey or contacted its customers to find out how many will be able to participate in the program. Mr. Fuss replied that they have asked those types of questions in Staff's production requests to the Company, which they anticipate will be answered this week. Commissioner Hansen stated he has some concerns because the program runs through September and most of the people in southeastern Idaho don't have air conditioning because it gets cool there in the evening. He said he didn't think that customers who don't have air conditioning can realistically cut their load through conservation by 20%. He said he is also concerned how much the Company is planning to spend to implement the project versus what kinds of response it will have. He said he recalled Avista put a similar program into effect and the customers had to qualify for a lot less. Mr. Fuss confirmed the savings in the Avista case had to be 5% and beyond that, customers receive 5 cents per kWh. Mr. Fuss said in this case, the customers get 20% of the remaining bill no matter how much over 20% they save. Commissioner Hansen asked if they have to reach 20% in order to get any kind of reimbursement, and Mr. Fuss confirmed that was correct.

Commissioner Smith stated she also doubted whether 20% savings could be achieved even with some rather extensive measures that ordinary households can take. She suggested the Staff should ask the Company if it has considered something that is more realistic that customers might actually be able to achieve.

Commissioner Kjellander said he thought 10% would be a more rational number as opposed to 20% and that he would like to hear the Company's thoughts on that since without much air conditioning, it wouldn't be rational to expect to see any load savings in that territory. He stated he would like the Company to put together an argument as to why it thinks 20% will somehow spark a reduction in load especially when there are programs in Avista's territory that seem to be more realistic from a consumer perspective.

Commissioner Hansen made a motion to proceed with the case under modified procedure with a 14-day comment period, but he noted he would not be in favor of granting preliminary approval of the Application, such as the Commission did in the Avista case, until there is more information. A vote was taken on the motion and it carried unanimously.

Joe Cusick's April 27, 2001 Decision Memorandum re: Complaint Against Qwest's Billing Practices by Bob Jessen.

Mr. Cusick reviewed his Decision Memorandum. Commissioner Smith stated that Qwest had pointed out a number of reasons why the Commission could not instantaneously approve a change from billing in advance to billing in arrears. She stated there are a number of practices and rates that are built on the assumption that there is advance billing for telecommunications services, as pointed out in the letter from Qwest, and there would be a number of adjustments that would need to be made if we wanted to make that kind of change. Commissioner Smith made a motion to deny the complaint based on the reasons provided by the Company and based on the time and expense involved in having a proceeding to change the practice. A vote was taken and the motion carried unanimously.

Scott Woodbury's April 27, 2001 Decision Memorandum re: Potlatch Corporation-Lewiston Facility Petition for Determination of Rates, Terms and Conditions of Service. Case No. AVU-E-01-05 (Avista).

Mr. Woodbury reviewed his Decision Memorandum. Commissioner Smith asked when they anticipated going to hearing. Mr. Woodbury replied that he thought the hearing would fall some time in August. Commissioner Kjellander asked when the current contract expires. Mr. Woodbury responded that it expires at the end of the year. Commissioner Kjellander made a motion to move forward with Staff's recommendations for a proposed procedure in the case. A vote was taken and the motion carried unanimously.

Scott Woodbury's April 27, 2001 Decision Memorandum re: Application for Certificate (Idaho Code 61-526) or Alternative Determination of Exempt Status Mountain Home Generation Station. Case No. IPC-E-01-12 (Idaho Power).

Mr. Woodbury reviewed his Decision Memorandum. He noted the matter was previously on the Commission's agenda and was pulled at the request of the Company to allow it to address an adverse zoning decision in Elmore County. He stated the zoning matter had been resolved and the Company recommends using modified procedure. He stated the Staff concurs with the Company's recommendation and recommends that a 30-day comment deadline be established. There were no questions or comments from the Commission. Commissioner Hansen made a motion to process the request under modified procedure and extend the comment period for 30 days. Commissioner Smith asked if 28 days could be the length of the comment period, in keeping with the goal of keeping things in seven-day increments. The other Commissioners agreed 28 days was agreeable to them. A vote was taken on the motion and it carried unanimously.

There were no further matters on the agenda and Commissioner Kjellander adjourned the meeting.

Dated this ____ day of May, 2001.

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COMMISSION SECRETARY

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