20070531final_order_no_30332.pdf

Office of the Secretary
Service Date
May 31 , 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-
ORDER NO. 30332
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.
On May 23, 2007, the Commission issued a Notice of Objection and scheduled a
telephonic hearing for May 29 2007. Order No. 30316. The Notice also directed that the Staff
verify the amount of BG&CM's reported intrastate operating revenue and provide the
information at the hearing.
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 into 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
ORDER NO. 30332
fee is calculated by multiplying .7623 percent (.007623) times its gross operating revenues. Id.
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 ~ 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 initially reported that its Idaho
gross intrastate revenue for calendar year 2006 was $667,422. Based upon the initially reported
amount, the Commission calculated BG&CM's 2007 regulatory fee as $5 087.76. In its May
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%.
THE HEARING
David Hattaway, Deputy Administrator, testified for the Commission Staff. One of
his responsibilities is to prepare the annual fee assessments for railroads. He testified that
BG&CM had originally reported gross intrastate revenues of $667,422 but revised its report
when the Railroad filed its timely objection. He reviewed the source documents provided by
BG&CM's home office in Richmond, Missouri. Based on his review of the source documents
he calculated that BG&CM's gross intrastate operating revenues for 2006 were $238 850.25.
The Railroad did not make an appearance at the telephonic hearing.
FINDINGS
Based upon our review of the Railroad's objection and testimony of the Staff, we
find that BG&CM Railroad filed a timely objection to its 2007 assessment. We further find that
BG&CM Railroad over-reported its gross intrastate operating revenue for calendar year 2006.
Based upon Staff's review of the source documents, we find the Railroad's correct intrastate
gross operating revenue for calendar year 2006 to be $238 850.25. Applying the assessment
ORDER NO. 30332
percentage of .007623 to the corrected revenue of $238 850.25 produces a corrected 2007
regulatory fee of$I 820.76.
ORDER
IT IS HEREBY ORDERED that BG&CM Railroad's objection to its 2007 regulatory
fee is granted as modified above.
IT IS FURTHER ORDERED that BG&CM's 2007 regulatory fee shall be $1 820.76.
This fee may be paid to the Commission no later than 28 days from the service date of this
Order. In the alternative, the Railroad may pay its regulatory fee in two equal installments: the
first installment due 28 days from the service date of this Order; and the second installment due
no later than November 15 2007.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3/
day of May 2007.
MARSHA H. SMITH, COMMISSIONER
~~/. ,
MACK A. RED
7tm
, CO
ATTEST:
Je !D. Jewell
Commission Secretary
bls/O:BGR-07-01 dh2
ORDER NO. 30332