20070523notice_of_objection_order_no_30316.pdf

Office of the Secretary
Service Date
May 23, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF BG&CM RAILROAD'OBJECTION TO ITS ANNUAL
REGULATORY FEE FOR CALENDAR YEAR 2007.
CASE NO. BGR-07-
NOTICE OF OBJECTION AND
NOTICE OF TELEPHONIC
HEARING
ORDER NO. 30316
On May 7, 2007, BG&CM Railroad filed a timely objection to its annual regulatory
fee for calendar year 2007. BG&CM operates portions of the previous Camas Prairie Railroad'
Grangeville branch line (Cottonwood to Spalding). In its objection, the Railroad stated that it
had over-reported its gross intrastate operating revenue for calendar year 2006. In calculating its
gross intrastate operating revenue, the Railroad had inadvertently included intrastate operating
revenues from another railroad. Consequently, BG&CM asserts that it had over-reported its
gross intrastate revenue by more than $427,422. Objection at 1. Pursuant to Idaho Code 9 61-
1007, the Commission initiates this case to examine the Railroad's Objection.
BACKGROUND
A. The Commission s Regulatory Fees
The Commission s operating funds are derived by assessing regulatory fees upon
utilities and railroads subject to the Commission s jurisdiction. Each year, the Legislature
authorizes the Commission to expense funds necessary to regulate and supervise utilities and
railroads. Idaho Code 99 61-1001 and 62-611. Idaho Code 9 61-1003 provides that on or before
April 1 of each year, each railroad corporation shall report its gross operating revenues from its
intrastate railroad business in Idaho for the preceding calendar year. When all the railroads have
reported their total intrastate revenues, this cumulative figure is divided by the amount the
Commission expends regulating railroads. For example, for fiscal year 2008 (July 1 , 2007
through June 30, 2008), the expenditure amount attributed to regulating railroads is $142 000.
Order No. 30304. The railroads reported gross intrastate operating revenues totaling
$14 071 803 for calendar year 2006. Thus, the proportionate share of each railroad's regulatory
fee is calculated by multiplying .7623 percent (.007623) times its gross operating revenues. Id.
NOTICE OF OBJECTION AND
NOTICE OF TELEPHONIC HEARING
ORDER NO. 30316
The maximum assessment fee for each railroad shall not exceed one percent (1.00%) of its gross
revenues, and the minimum fee shall be no less than $50. Idaho Code 9 61-1004.
Once the railroad assessment is determined, the Commission notifies each railroad of
its regulatory fee no later than May 1 of each year. The regulatory fee may be paid to the
Commission in equal semi-annual installments due May 15 and November 15. Idaho Code 9 61-
1005. Any railroad may object to its regulatory fee "on or before the time specified for payment
of the first installment of the assessment made against it." Idaho Code 9 61-1007.
B. The Railroad's Objection
As mentioned above, BG&CM asserts that it over-reported its gross operating
revenue. In its certification dated March 5, 2007, the Railroad reported that its Idaho gross
intrastate revenue for the calendar year 2006 was $667 422. In its objection, the Railroad
maintains that its actual intrastate gross operating revenue for calendar year 2006 was $240 000.
The Railroad alleges that it inadvertently reported operating revenues from two railroads.
Consequently, the cumulative total of intrastate operating revenues for all the railroads was
allegedly over-reported by 3.0%.
Based upon the over-reported amount, BG&CM's 2007 regulatory fee is $5 087.76.
Keeping the assessment at the established level (.007623) but multiplying by the "corrected"
amount, results in a fee of $1 ,892., or approximately $3 250 less.
DISCUSSION
The Commission s fee assessment statutes contemplate that a railroad's objection to
its regulatory fee "shall proceed" on an expedited basis. Idaho Code 9 61-1007 requires that the
Commission hold a hearing regarding the fee objection within 20 days of the date the objection is
filed with the Commission. Moreover, the Commission shall make and issue its findings and
Order within 20 days after the hearing.Consequently, it is the Commission s intent to
expeditiously consider the Railroad's objection.
In this case, BG&CM alleges that it misreported its intrastate operating revenues.
When a similar objection was made in 2002, the Commission directed that the Staff verify the
correct amount of reported intrastate operating revenue. Consequently, we direct the
Commission Staff to expeditiously verify the reported revenues of BG&CM.
NOTICE OF OBJECTION AND
NOTICE OF TELEPHONIC HEARING
ORDER NO. 30316
NOTICE OF HEARING
YOU ARE HEREBY NOTIFIED that the Commission shall convene a telephonic
hearing on TUESDAY. MAY 29. 2007 AT 10:00 A.M. MOUNTAIN TIME (9:00 A.
PACIFIC TIME) IN THE COMMISSION'S HEARING ROOM. 472 W. WASHINGTON
STREET. BOISE. IDAHO [phone] Persons wishing to listen to the proceeding may
dial 888-285-4585 and enter Participant Code 135601. (This is a toll-free call.) The
purpose of the hearing will be to present evidence regarding the appropriate amount of gross
intrastate operating revenue for BG&CM Railroad in calendar year 2006. Given the expedited
nature of this proceeding, the Commission finds there is good cause to schedule the telephonic
hearing on less than 14 days' notice. BG&CM may participate at the hearing by telephone. The
parties may also present "live" testimony.
YOU ARE FURTHER NOTIFIED that all hearings in this matter will be held in
facilities meeting the accessibility requirements of the Americans with Disabilities Act (ADA).
Persons needing the help of a sign language interpreter or other assistance in order to participate
in or to understand testimony and argument at a public hearing may ask the Commission to
provide a sign language interpreter or other assistance at the hearing. The request for assistance
must be received at least five (5) working days before the hearing by contacting the Commission
Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretary~puc.idaho.gov
YOU ARE FURTHER NOTIFIED that all prepared exhibits must conform to
requirements of Rule 267 of the Commission s Rules of Procedure, IDAPA 31.01.01.267.
YOU ARE FURTHER NOTIFIED that all hearings will be conducted pursuant to the
Rules of Procedure adopted by the Idaho Public Utilities Commission. IDAP A 31.01.01.000
seq.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter under Title 61 of the Idaho Code and specifically Idaho Code 9 61-1007. The
Commission may enter any final Order consistent with its authority under Title 61.
NOTICE OF OBJECTION AND
NOTICE OF TELEPHONIC HEARING
ORDER NO. 30316
ORDER
IT IS HEREBY ORDERED that the Commission initiates this proceeding based
upon BG&CM Railroad's objection to its calendar year 2007 regulatory assessment.
IT IS FURTHER ORDERED that the Staff verify the assertions made by BG&CM
for purposes of determining the Railroad's gross intrastate operating revenue for calendar year
2006.
IT IS FURTHER ORDERED that the Staff and the Railroad shall appear at the
telephonic hearing as set out above.
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this .:2;;. Ai
day of May 2007.
PAUL KJE L
Lf&t:l1-
MARSHA H. SMITH, COMMISSIONER
ATTEST:
bls/O:BGR-07-0 I dh
NOTICE OF OBJECTION AND
NOTICE OF TELEPHONIC HEARING
ORDER NO. 30316