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Home My WebLink About20050418_1172.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM:AVID HA TT AWAY DATE:APRIL 15,2005 RE:CALCULATING THE 2005 REGULATORY FEE ASSESSMENTS FOR PUBLIC UTILITIES AND RAILROADS, CASE NOS. F~2006-1 AND F -2006- In March of 2005 the Legislature passed Senate Bill 1182, Senate Bill 1230 , House Bill 395 , and House Bill 396 appropriating $4 736 000 to the Commission for Fiscal Year 2006. The total appropriation consists of $127 200 from fees assessed on railroad corporations 538 900 from fees assessed on public utilities and $69 900 expenditures for pipeline safety activities reimbursable by the federal government. Attachment 1 shows the calculations .to arrive at the following amounts. Please note House Bill 395 authorizes a one-time salary increase to state employees contingent upon sufficient funds as of June 30, 2005. The Commission s share is $24 600 and, because the Commission s annual regulatory fee is only assessed once a year, it is included in appropriation amount shown on Attachment 1 , line 1. If the contingency is not met the Commission will not expend $24 600 and it shall be carried over to FY 2007 per Idaho Code 961-1008(3). Attachment 2 shows the calculations to arrive at the following rates. The utilities have an adjusted carry-over balance from Fiscal Year 2004 expenditures of $316 276 and an additional $8 568 for the difference between last year s estimated federal reimbursement and the actual dollars received. Thus, the Staff calculates that the 2005 assessment for public utilities to fund Fiscal Year 2006 is $4 231 192. For calendar year 2004 , Title 61 , and Title 62 utilities reported gross intrastate operating revenues from utility operations in Idaho totaling $1 651 661 815. This is a reported revenue increase of $55 076 937 from the prior year by 3.45%. Accordingly, the Staff DECISION MEMORANDUM determined the proportionate share of each utility s fee should be assessed at .2562% (.002562) of each utility s gross intrastate operating revenue. Pursuant to Idaho Code 9 61-1004(3) the minimum regulatory fee assessed is $50. Estimated railroad expenditures for FY 2006 are $127 200. The railroads have no adjusted carry-over from Fiscal Year 2004. Therefore, the proportionate share of the assessment is $127 200. The gross intrastate operating revenue from railroad operations in Idaho was $18 912 097 for calendar year 2004. This is a decrease of$1 884,419 , down 9.10/0 from the prior year. Accordingly, the proportionate share of each railroad's fee is to be assessed at .6726% 006726) of each railroad's gross intrastate operating revenues. No railroad shall be assessed less than $50 Idaho Code 9 61-1004(3). Idaho Code 9 61-1003 requires that each utility report its gross intrastate operating revenue no later than April 151 of each year. As of April 14, 2005, there are approximately 161 utilities that have not reported their gross intrastate operating revenues. The number of companies not reporting is down 12.5% from last year. Of the 161 companies, 29 are in bankruptcy or have been returned with no forwarding address. Most of these are Title 62 companIes. The vast majority of these companies pay the $50 minimum regulatory fee. An additional 26 non-reporting companies have been targeted to show cause why the Commission should not seek to revoke their authority to conduct business in Idaho. The Staff intends to send a transmittal letter with the assessment order advising these companies that they still must report their 2004 gross intrastate operating revenues. Failure to report these revenues may result in legal action against these companies. 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 $4 231 192 be deducted from the next regulatory assessment. Commission Decision 1. Does the Commission agree with the Staff calculation of the regulatory assessment for utilities of$4 231 192 and for railroads of$127 200. 2. Does the Commission agree with the Staff calculation of the regulatory assessment of .2562% (.002562)? DECISION MEMORANDUM 3. Does the Commission agree with the Staff calculation of the regulatory assessment of railroads of .6726% (.006726)? 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 2004 that the Commission may take legal action against them for their failure to report? 5. Does the Commission find there is sufficient cause to issue show cause orders to the 26 companies? bI5/M:F-2004-2004-jdh DECISION MEMORANDUM 116 763.140 715. 130 855.824,438. (14 092.00)316 276. 200SASS.xls:Calculation Attachment 1 IDAHO PUBLIC UTILITIES COMMISSION CALCULATION OF 2005 ASSESSMENT For Fiscal Year 2006 (amounts are"in dollars) 1 Allocation of Appropriation Railroad 127 200. LESS: Adjustment for Pipeline Safety Program: Budgeted Expenditures of federal funds for IPSP in FY 2006 Appropriation for Utilities Regulation Adjustment for actual reimbursement from Federal Pipeline Safety: Amount deducted from FY05 Total Appropriation for Federal share of Idaho Pipeline Safety Activities Actual Cash received from Federal Government to fund the Pipeline Safety Program (cash collected in Sep04 Mar OS) ADD: (over-)under reimbursement 7 Amount of Appropriation after adjustment for federal dollars 127 200. Adjustment for Under (Over)-expended Cash: Total Cash Collected from Companies for Calendar Year 2003 (Jan 1 , 2003to Dec 31 2003) to Fund Fiscal Year 2004 (Ju11 , 2003 to Jun 30, 2004) LESS: Total Cash Expended in FY 2004 10 Adjust for Total under-expended (over-expended) Cash for FY2004 Note: The Railroad portion of the Commission s FY 2006 appropriation needs no adjustment this year. Actual collections were less than actual expenditures for the first time in three years. The Public Utilities Commission Fund had enough resources to cover the reduced collections. Utilities 608 800. . 69 900. 538 900. 67 jt2~.OO 561. 568. 547,468. 11 Amount Required to Fund Utilities for Fiscal Year 2006 127,200.231 191. Total Appropriation 4736000. ' .. . 2005ASS.xls:alloc factors Attachment 2 Apportionment Factor (%) Calculation of 2005 Assessment for FY 2006 Pipeline Safety Reimbursement Railroad Utilities Totals Last Year 2004 assessment over(under) last yrs collection \f)!':1:~$:()Q. ..: 771. Change in Gross Intrastate Revenues(GIR) Reported Gross Intrastate Revenues for 2004Last Year 2003 GIR over(under) last yr percent increase/(decrease -) n/a n/a Apportionment Factor Calculation .... ... .../. .. (935.76) .'..$:i S~$~()Q$;$$.: 391 898.45 ~~:::~$~;~i$;6~..' ,::. :.: :~::~~~:~~1;iji9;~~:: 884,419.00) 55 076 937.4806% 3.45% .... ... ..:.:.:.: 393 733. ~j~f~;j~I;~~~:j~~.:. 192 518.48 Last Year over(under) last yr percent increase/(decrease -) 12 Maximum by Law GIR Necessary before Fees Exceed $5013 Utilities14 Railroad 50. 50. 002562 006726 ."...' .." ... Q;()()$1:f)t:::: 000565 17% 010000 7,433. ....'..'....::.:.. ". 000157 53% 003000 516.