20010924.min.doc

MINUTES OF DECISION MEETING
SEPTEMBER 24, 2001

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 items 1—10 on the CONSENT AGENDA. Commissioner Smith said she was confused by the suggested procedure in item 5 and asked if Staff had proposed rates for Falls Water. Mr. Woodbury replied that Staff believed the revenue requested by the Company cannot be supported, and Staff will be recommending rates lower than what the Company has proposed. Commissioner Smith asked if Staff has informed the Company of that and suggested to the Company numbers that could be supported so the Commission could put out a notice that might actually reflect what rates could be. Mr. Woodbury said Staff has made some adjustments to the Company's application and the Company agreed that some of the adjustments were appropriate. Terri Carlock replied that the auditor has talked to the Company on the issues and the Company has agreed with the adjustments that were made but they still want the same amount of money. Commissioner Smith clarified that Staff will put the Company's rates out for comment, Staff will comment based on what their audit shows, and Staff will file a report and let the Company reply at which point the Commission will decide. Commissioner Smith also confirmed that in the meantime, customers are paying the present, approved rates.

There was no further discussion and the Consent Agenda items were approved.

The next order of business was MATTERS IN PROGRESS. Commissioner Kjellander noted that item 13 would be held until a later date.

Doug Cooley's September 12, 2001 Decision Memorandum re: Idaho Public Utilities Commission's Authority to Reclaim Telephone Prefixes (NXX).

Mr. Cooley reviewed his Decision Memorandum. Commissioner Smith asked how much staff time it will take to monitor the reclamation of telephone prefixes at the state level. Mr. Cooley said in talking with a couple of the other states, once it's up and running and a system is in place for tracking who is on the reclamation list, it doesn't appear to take a lot of staff time. Commissioner Smith said her concern is what it takes to get it up and running. Mr. Cooley replied that it is simply a matter of establishing a spreadsheet that will red flag numbers when six months are up. He said the Commission won't need to do anything until the FCC notifies us that a number hasn't been activated, and then at that point the Commission will go after them. Commissioner Smith asked where Staff will obtain the information that goes into the spreadsheet. Mr. Cooley said that information comes from a semi-annual survey that the numbering plan administrator sends to all carriers every six months, and that data is already being sent to us every six months. Mr. Cooley said that the FCC has authority right now to contact companies with expiring prefixes, unless we let them know we would rather contact the companies on our own. He said it is fairly typical that companies will get a notification that their prefix has expired and then they will ask for extensions. He said Staff feels it would be more effective to police it in our own state. Commissioner Smith asked him if he thought we would need more staff, and Mr. Cooley replied he hoped not and other states have not had to hire more staff.

Commissioner Kjellander asked if we could return the duty to the FCC if it proved to be beyond what our staff can handle. Mr. Cooley replied that it was his understanding that would be an option. There was no further discussion and Commissioner Kjellander moved for approval of the state taking over the reclamation of the NXX numbers. A vote was taken and the motion carried unanimously.

Weldon Stutzman's September 18, 2001 Decision Memorandum re: Qwest's Violation of Commission Order No. 27785. Case No. USW-S-96-5.

Mr. Stutzman reviewed his Decision Memo. Commissioner Kjellander confirmed that the Commission was not being asked at this time where to house the $643,639. Mr. Stutzman replied that was correct. Commissioner Kjellander asked if the money was going to be collecting interest in the interim. Mr. Stutzman replied it was entirely up to the Commissoin. He said Qwest was prepared to write the check and deposit it into an account designated by the Commission, but a determination as to its distribution could be made at a later time.

Commissioner Smith asked if there has been any kind of follow-up to make sure the billing practices have actually been changed. Mr. Stutzman said he believed staff has continued to monitor but he wasn't sure how recently. Commissioner Smith asked why the Commission allowed the Order to expire after only three years. Mr. Stutzman said the order reflects an optimistic hope by the Commission that competition would emerge in the local markets and obviate any need for regulation of the service. Commissioner Smith said she hoped Staff would call this to their attention before its expiration date comes up next year so that perhaps it can be continued again since competition hasn't swept through here yet. She moved for approval of the Stipulation with the addition that Qwest should begin paying interest at the rates of customer deposits until the Commission determines where that money should go.

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

Scott Woodbury's September 21, 2001 Decision Memorandum re: BPA Residential and Small Farm Energy Rate Adjustment Credit. Case No. IPC-E-01-30.

Mr. Woodbury reviewed his Decision Memo. There was no discussion. Commissioner Smith moved for approval of the small farm and residential credit, reserving for future decision the accounting treatment and PCA methodology that should be used. A vote was taken and it carried unanimously.

Wayne Hart's September 21, 2001 Decision Memorandum re: Formal Complaint of Lance and Karissa St. Onge.

Mr. Hart reviewed his Decision Memo. Commissioner Hansen commented it is unfortunate when these things come before the Commission that they are not expedited in a more efficient manner by Qwest, and the Commission needs to recognize the delay was due to Qwest's reluctance to respond. He said two years is a long time and it is fair to reduce the charge to the $2,012.46, one of Staff's recommendations. He said we should consider the complaint without further proceedings.

Commissioner Smith asked Mr. Hart if the calculation of the Company's charge at .83 cents per foot is the same as it would be for Qwest South customers. Mr. Hart replied that Qwest's South tariff functions considerably different, with the customer allowance in North Idaho being one-half mile regardless of cost whereas in South Idaho it is $1600. He said in South Idaho it is based on actual costs and a bid estimate of what the costs are going to be for the exact location. He stated that in North Idaho, they use the .83 cents per foot, which is their average cost. Commissioner Smith confirmed that if the complainants were in the South territory, Qwest would take the $12,000 and subtract $1,600, asking the customer for all of it up front. She commented that the customers are better off under the existing tariff up North.

Commissioner Hansen made a motion to approve the cost of $2,012.46 and as part of the motion ask that Qwest also update the line extension policy for its northern Idaho tariff area so it is consistent with its southern Idaho tariff. A vote was taken and the motion carried unanimously.

Commission Kjellander stated that he wanted to make note of Marge Maxwell's work on item 12. He said the Commission appreciates her efforts. He then adjourned the meeting.

DATED this ______ day of October, 2001.

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COMMISSION SECRETARY
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