20021028min.doc

MINUTES OF DECISION MEETING
OCTOBER 28, 2002 – 1:30 P.M.
(SUBJECT TO COMMISSION APPROVAL)

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 FROM PREVIOUS MEETING: October 15, 2002. There was no discussion and the minutes were approved.

The next order of business was approval of items 2-5 on the CONSENT AGENDA. There were no questions or comments. Commissioner Kjellander made a motion to approve Consent Agenda items 2-5. A vote was taken and the motion carried unanimously.

The next order of business was MATTERS IN PROGRESS:

Lisa Nordstrom’s October 25, 2002 Decision Memorandum re: In the Matter of a Two-Year Pilot Winter Protection Program that Establishes Minimum Monthly Payments During the Winter Moratorium. Case No. GNR-U-02-1.

Don Howell reviewed Ms. Nordstrom’s Decision Memo. Commissioner Smith asked if the pilot program would apply to all utilities or only to Intermountain Gas, Avista, and PacifiCorp. Mr. Howell confirmed that it only applied to those three companies.

Commissioner Hansen asked how long the current rule has been in effect. Ms. Barker replied that it has been in effect since 1980. Commissioner Hansen asked why the rule was implemented in the first place. Ms. Barker replied that the implementation of the winter moratorium was a by-product of the PURPA proceedings and the basic impetus was the health and safety of customers with the concern that disconnections in the winter months would impose the risk of damaged health and even death. Commissioner Hansen stated that he thought the timing was very poor to implement a pilot program. He commented the parties have been working on this for most of the year, yet what notice has the customer had. He said a lot of people in Idaho have lost their jobs this year and in the last few months there have been company closures. He said people are unemployed and out of work, and Idaho is a seasonal environment, anyway, where a lot of people work for the farm industry and are out of work for maybe two to three months in the winter. He said with the economy like it is, there will be a lot of people who will suffer by implementing a pilot program this quickly. He said if the program has any worth to it at all, we should work on it to give the public proper notice and hearings and a chance to get involved so we can get the total picture and look at it in 2004 as a pilot program. He said it may be a very worthy project but to implement it on such short notice to the public, with the economic conditions we have in Idaho right now, there will be some terrible repercussions this coming winter. He said he is very concerned about moving on with the pilot program right now.

Commissioner Smith said she has a view that is 180 degrees from Commissioner Hansen’s. She said she didn’t think the pilot program is quick because the utilities and assistance agencies have been working on it for months. She said she sat in on one of their meetings, and the Commission has received a letter from LIEAP and the community action agencies stating they support this and would like us to try it. She said no one is entitled to receive free service, and that is kind of what the moratorium has turned out to be for a lot of people. She said she didn’t think people should expect to pay nothing, and even if it’s $10.00, they should be paying something. She said the utilities are not doing them a favor by allowing them to incur huge balances that cause them to be disconnected the next spring, with the requirement that they be paid up before they can be reconnected. She said she would like to see the pilot program proceed. She said our normal comment period is enough time to have people submit comments to us, and she would also have a process so that if people can’t make their minimum payment, they can contact the Commission and special arrangements can be made for them, because we don’t want people disconnected. She stated she would really like to get the pilot underway to see if the people who have worked on it all these months have developed a plan that goes in the right direction and if it will help customers stay on top of their bills while not getting disconnected. She said she would like to start it when the moratorium period normally begins.

Commissioner Kjellander stated he had a third different perspective. He said he is inclined to agree with both Commissioners’ statements, and for that reason the option of looking at just Intermountain Gas seems to be more in line with what a pilot project might be. He said if the pilot is isolated to one utility, we will g et an opportunity to look at what happens within one utility, and Intermountain Gas also happens to be the utility where we see the most number of customers who seem to be unable to make payments. He said it is also a utility where rates are back down to near normal historic levels, and the program could be extended to the other utilities in the following year.

Commissioner Smith suggested that an order be prepared putting the matter out for comment, including in the order the range of views expressed by the Commissioners. She said after we receive comments, we will have a better idea of the correct course to pursue.

Commissioner Hansen clarified that if a customer’s level pay was $140 per month, and even if they were out of work and at poverty level, then they would still need to come up with $70 to keep their heat on. He asked what would happen if the agencies are out of money—would customers be expected to just put on a few more coats and slippers? Mr. Howell replied that at this point, the Commission is only being asked if it should go out for Modified Procedure, and the Commission is not approving the program, unless it is the Commission’s intent to approve it today. Mr. Howell mentioned that the applicants have proposed an eligibility requirement that would make it so that the only people who could participate in this program would be those who are eligible for energy assistance under LIEAP, making it income-based eligibility.

Commissioner Smith made a motion to put the proposal out for public comment under Modified Procedure in an order that expresses the range of views of the Commissioners. She said the Commission should also ask for comments about limiting the program to particular companies and whether half of the level pay is the right level, whether there should be other safeguards in addition and whether having income-eligibility criteria is the correct criteria. Commissioner Smith said we should get the order out as soon as possible and have a 21-day comment period so the Commission can decide before December 1st.

There was no further discussion on the motion. A vote was taken and the motion carried two to one, with Commissioner Hansen dissenting.

The next order of business was RULEMAKING:

Weldon Stutzman’s October 25, 2002 Decision Memorandum re: Proposed Changes to Safety and Accident Reporting Rules, Case No. 31-1101-0201, and Proposed Changes to Utility Customer Relations Rules, Case No. 31-2101-0201.

Mr. Stutzman reviewed his Decision Memo. Commissioner Hansen asked if Staff was proposing that we adopt the rule and then have the rulemaking process. Mr. Stutzman replied that the proposed rules have been published in the Administrative Rules Bulletin as proposed rules, and the next step is to adopt the rules and issue a Notice of Pending Rule.

Commissioner Smith asked what Staff wanted to do about the calculation of average usage for the purposes of figuring the deposit for heating-only customers in Rule 105. Bev Barker explained that Staff recommended changing the requirement so that customers who use gas service only for space heating are not penalized.

Commissioner Hansen asked if this related back to when we were talking about allowing the company to do credit checks. Bev replied that those are different rules that talk about using commercial credit records--Rule 102 and part of Rule 101--but they will also be included in this submission to the Legislature

There was no further discussion. Commissioner Smith made a motion to adopt the proposed rules for Safety and Accident Reporting and issue a Notice of Pending Rule in Case No. 31-1101-0201, and adopt the proposed rules for Customer Relations and issue a Notice of Pending Rule in Case No. 31-2101-0201, leaving in Rule 105 with changes as originally proposed. A vote was taken and the motion carried two to one, with Commissioner Hansen dissenting.

Commissioner Kjellander noted that items 8 and 9 were under FULLY SUBMITTED MATTERS and would be deliberated privately. He then adjourned the meeting.

DATED this _____ day of October, 2002.

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COMMISSION SECRETARY

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