20040412_807.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAVID HATTAWAY
DATE:APRIL 12 2004
RE:CALCULATING THE 2004 REGULATORY FEE ASSESSMENTS FOR
PUBLIC UTILITIES AND RAILROADS, CASE NOS. F-2004-1 AND F-2004-
In March of 2004 the Legislature passed House Bill 736 and House Bill 805
appropriating $4 606 400 to the Commission for Fiscal Year 2005. The total appropriation
consists of $142 100 from fees assessed on railroad corporations, $4 393 900 from fees assessed
on public utilities and a $70 400 expenditures for pipeline safety activities reimbursable by the
federal government. Attachment 1 shows the calculations to arrive at the following amounts.
Attachment 2 shows the calculations to arrive at the following rates.
The utilities have an adjusted carry-over balance from Fiscal Year 2003 expenditures
of $487 677 and a deduction of $70,400 for the estimated reimbursement from the federal
pipeline safety program. The latter amount was reduced by $3 271 difference between last
year s estimate and the actual reimbursement. Thus, the Staff calculates that the 2004
assessment for public utilities to fund Fiscal Year 2005 is $3 839 094.
For calendar year 2003 , Title 61 and Title 62 utilities reported gross intrastate
operating revenues from utility operations in Idaho totaling $1 596 584 878. This is a reported
revenue decrease of $124 661 536 from the prior year by 7.24%. Accordingly, the Staff
determined the proportionate share of each utility s fee should be assessed at .2405% (.002405)
of each utility s gross intrastate operating revenue. Pursuant to Idaho Code ~ 61-1004(3) the
minimum regulatory fee assessed is $50.
DECISION MEMORANDUM
Estimated railroad expenditures for FY 2005 are $142 100. The railroads have an
adjusted carry-over from Fiscal Year 2003 of $13 964. The proportionate share of the
assessment is $128 135. The gross intrastate operating revenue from railroad operations in Idaho
was $20 796 516 for calendar year 2003. This is an increase of $5 541 533 , up 36.33% from the
prior year. Accordingly, the proportionate share of each railroad's fee is to be assessed at
6161 % (.006161) of each railroad's gross intrastate operating revenues. No railroad shall be
assessed less than $50 Idaho Code ~ 61-1004(3).
Idaho Code ~ 61-1003 requires that each utility report its gross intrastate operating
revenue no later than April 1 8t of each year. As of April 9, 2004, there are approximately 184
utilities that have not reported their gross intrastate operating revenues. The number of
companies not reporting is up from last year. Of the 184 companies not reporting, 28 have been
targeted to show cause why the Commission should not seek to revoke their authority to conduct
business in Idaho. All of these are Title 62 companies. The vast majority of these companies
pay the $50 minimum regulatory fee.
The Staff intends to send a transmittal letter with the assessment order advising these
companies that they still must report their 2003 gross intrastate operating revenues. Failure to
report these revenues may result in legal action or a suspension/revocation of their authority to
operate in Idaho. If the delinquent companies report revenues that would result in regulatory
fees exceeding the $50 minimum, then the Commission Staff recommends that these accounts be
assessed at the current rate and that revenues which exceed the total assessment of $3 839 094 be
deducted from the next regulatory assessment.
Commission Decision
1. Does the Commission agree with the Staff s calculation of the regulatory
assessment for utilities of$3 839 094 and for railroads of$128 135?
2. Does the Commission agree with the Staff s calculation of the regulatory
assessment of .2405% (.002405)?
3. Does the Commission agree with the Staff s calculation of the regulatory
assessment of railroads of .6161% (.006161)?
4. Does the Commission approve of the Staff s use of a cover letter advising the
companies that have not reported their gross intrastate operating revenues for 2003 that the
DECISION MEMORANDUM
Commission may take legal action or a suspension/revocation of their authority to operate
Idaho?
5. Does the Commission find there is sufficient cause to issue show cause orders to
the 28 companies?
t4.
David Hattaway
b 181M :F-2004-- F-2004-2jdh
DECISION MEMORANDUM
ATTACHMENT 1
IDAHO PUBLIC UTILITIES COMMISSION
CALCULATION OF 2004 ASSESSMENT
For Fiscal Year 2005
(amounts are in dollars)
Allocation of Appropriation
LESS: Adjustment for Pipeline Safety Program:
Budgeted Expenditures of federal funds for IPSP in FY 2005
Appropriation for Utilities Regulation
Adjustment for actual reimbursement from Federal Pipeline Safety:
Amount deducted from FY04 Total Appropriation for
Federal share of Idaho Pipeline Safety Activities
Actual Cash received from Federal Government in calendar year 2003
ADD: (over-)under reimbursement
Total of Adjustment
Amount of Appropriation after adjustment for federal dollars
Adjustment for Under (Over)-expended Cash:
Total Cash Collected from Companies for Calendar
Year 2002 (Jan 1 , 2002to Dec 31 2002) to Fund Fiscal Year
2003 (JuI1 , 2002 to Jun 30, 2003)
LESS: Total Cash Expended in FY 2003
Total under-expended (over-expended) Cash for FY2003
Amount Required to Fund Utilities for Fiscal Year 2005
Railroad
142 100.
Utilities
4,464 300.
70,400.
393,900.
057.
328.
(3,271.00)
129.
142 100.326 771.
130 306.234 971.
116 342.747 294.44
964.487,677.
128,135.839,093.
Total
Appropriation
606 400.
2004ASS.xl",lIoo faoto"ATTACHMENT 2
Apportionment Factor (%)
Calculation
of 2004 Assessment
for FY 2005
Pipeline Safety
Reimbursement Railroad Utilities Totals
Last Year 2003 assessment
over(under) last yr's collection
.....q$;4DOWO.
729.
....
JHtj$4/t$i
802.
"""""""
4;1,Q,filq,M .
(263 581.99)
.....4,?a7,40~i$??
(253 050.01 )
Change in Gross Intrastate Revenues(GIR)
Reported Gross Intrastate Revenues for 2003Last Year 2002 GIR
over(under) last yr
percent increase/(decrease-)
nla
nfa
796 516.
t$,-?M,$$~~i'Iq' .
541 553.
36.33%
~)~~~:~~:;~~~;$~........
(124 661 535.69)
24%
617,381 393.
...
1;Z~9iiPP1;$f$,&$..
(119 119 982.69)
Apportionment Factor Calculation
Last Year
over(under) last yr
percent increase/(decrease -)
GIR Necessary before Fees Exceed $5013 Utilities14 Railroad
50.
50.
(0.001662)000021
21.25%88%
010000 003000
002405 790.
006161 115.
12 Maximum by Law