kempthorne_dh.doc

August 27, 1999

The Honorable Dirk Kempthorne
Office of the Governor
Statehouse
Boise, ID 83720

Re: CS-CIMS Inquiry, Tracking ID 1999-1928

Dear Governor Kempthorne:

You have asked for a report regarding a letter your office received from Ray Delay, General Manager of the Co-op Country Stores in Sandpoint, Idaho. In Mr. Delay’s letter dated August 12, 1999 and forwarded to the Commission on August 25, 1999, he asked for your assistance concerning a recent decision made by the Public Utilities Commission in our Order No. 28106. In his letter, he specifically seeks the Governor’s assistance on two points: (1) encourage the City of Ponderay to “file the appropriate appeals” of the Commission’s Order; and (2) “use your influence to change the outcome of the IPUC conclusions.”

In Order No. 28106 issued August 5, 1999, the Commission authorized Union Pacific Railroad to close a railroad grade crossing located in Ponderay. As the Commission noted in its Order, the dispute regarding the closure of this crossing dates back to 1986. The Order on pages 1-5 contains a brief history of this dispute. I have attached the Order and our press release for your information.

Pursuant to state law, the Commission determined that the crossing presents an unreasonable hazard to public safety and that the crossing is not reasonably necessary for the travelling public. As discussed in the Order, a “newer” crossing with automatic warning signals and barrier gates was built to replace the “older” crossing. The Commission recognized that closure of the old crossing may cause some hardships and deferred the actual closure until October 1, 2000. The delay was to allow the City of Ponderay, the Idaho Transportation Department (ITD) and other interested persons to explore other traffic measures which might be incorporated in ITD’s upcoming relocation/improvement of U.S. Highway 95.

Under Idaho law, persons aggrieved by our Order had until August 26, 1999, to petition us to reconsider our Order. To date, we have received many Petitions for Reconsideration. Given the ongoing nature of this dispute, it would be inappropriate for us to engage in any discussions regarding this matter. I would be happy to provide your office with our decision regarding reconsideration and any further proceedings.

Sincerely yours,

Dennis S. Hansen
President

Enclosure

Vld/L:Kemp_dh

Honorable Dirk Kempthorne
August 27, 1999
Page 2

2