20010507.min.doc

MINUTES OF DECISION MEETING
MAY 7, 2001 - 1:30 p.m.

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

Commissioner Kjellander opened the meeting. He noted the minutes had not been circulated and would be held for a later Decision Meeting. The first order of business was the CONSENT AGENDA, items 2 and 3. There were no comments or questions on the items and they were approved with unanimous consent.

The next order of business was MATTERS IN PROGRESS:

Scott Woodbury's May 3, 2001 Decision Memorandum re: Firm Energy Sales Agreement—Second Amendment Simplot Pocatello Fertilizer Plant. Case No. IPC-E-01-10 (Idaho Power).

Mr. Woodbury reviewed his Decision Memorandum. He noted that Commissioner Smith had questioned him earlier about the liquidated damage provision. He explained it continues for the first year of the agreement and it is eliminated for the remaining two years because the company has no minimum generation requirement in years 2 and 3 of the agreement.

Commissioner Hansen said it is difficult to compare the future rates with the existing rates and what the company is proposing is reasonable and in the long-term, it is in the public interest. He moved for approval of the second amendment effective January 1, 2001.

Commissioner Smith said she was initially concerned that there would be a rush to re-do all the contracts that are out there, but Mr. Woodbury had advised her there are no other contracts in the same situation due to expire this year, so she could support the motion. Mr. Woodbury said he wasn't certain there are not other companies out there, but the company had advised him it didn't think there were other contracts expiring, although it hadn't actually checked all its contracts. Commissioner Smith noted the contract in question is over 10 megawatts, so it is subject to negotiation of the parties. Mr. Woodbury stated he had received a call from an owner of some of the other companies inquiring as to whether they could take advantage of the rates but they are not similarly situated as far as contract terms. He said Idaho Power has indicated to him that if there are other contracts out there, the company is willing to talk to the companies involved.

There was no further discussion on the motion. A vote was taken and it carried unanimously.

Weldon Stutzman's May 4, 2001 Decision Memorandum re: Qwest's Motion for Procedural Order to Schedule a UNE Cost Proceeding. Case No. USW-T-00-15.

Mr. Stutzman reviewed his Decision Memorandum. Commissioner Kjellander asked him if there have been any preliminary discussions with other states regarding the potential for collaboraton. Mr. Stutzman replied there have been several discussions and at this point, it looks like four other states are interested in joining some sort of collaborative process. Commissioner Kjellander confirmed that the collaborative effort would include sharing costs.

Commissioner Smith asked what the company thinks about sharing with other states, how soon he would know if other states are interested, and how much it will push the dates back. Mr. Stutzman replied he will know later this week how serious other commissions are about a collaborative effort. He said at this point he didn't think the company supported the multi-state process and that the company preferred to pursue it separately in each state. Commissioner Smith noted the attachment to the Decision Memo from QSI and asked about QSI. Mr. Stutzman replied that they are a consulting firm out of Denver and he was short of any further details. Commissioner Smith said she felt short on all the details and thought it would be best to hold off on any decision for a week or so. She said she would like to make a motion to that effect. There was no further discussion. A vote was taken on the motion and it passed unanimously.

Being no further business on the agenda, Commissioner Kjellander adjourned the meeting.

Dated this _____ day of May, 2001.

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COMMISSION SECRETARY
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