20080715_2297.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:NEIL PRICE
DEPUTY ATTORNEY GENERAL
DATE:JULY 3, 2008
SUBJECT:APPLICATION OF ROCKY MOUNT AIN POWER FOR A
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
AUTHORIZING CONSTRUCTION OF THE POPULUS-TO-TERMINAL
345 KV TRANSMISSION LINE PROJECT; P AC-08-03.
On April 18, 2008, Rocky Mountain Power, a division of PacifiCorp, ("Rocky
Mountain Power ), filed an Application for a Certificate of Public Convenience and Necessity
pursuant to Idaho Code ~~ 61-526 through 528, IDAP A 31.01.01.111 and 112 and Commission
Order No. 26665 seeking authorization to construct a 345 kV Transmission Line, alkla Populus-
Terminal Transmission Line, to be located in Bannock and Oneida Counties as well as a new
substation to be located in Downey, Idaho. Application at 1.
THE APPLICATION
Rocky Mountain Power is a Utah corporation providing retail electric service to
customers in Utah, Wyoming and Idaho. The Company lists its principal place of business as
Salt Lake City, Utah. Id. at 2. Rocky Mountain Power has filed a Certificate of Assumed
Business Name with the Idaho Secretary of State acknowledging PacifiCorp as the Company
true name." Rocky Mountain Power s parent company, PacifiCorp, is registered with the Idaho
Secretary of State and lists CT Corporation System, 1111 W. Jefferson, Ste. 530, Boise, Idaho
83702, as its Idaho registered agent for service.
Rocky Mountain Power states in its Application that, over the past decade, it has
experienced "significant increases in its retail loads.Id. at 2. Accordingly, the Company
believes that it must upgrade its "existing transmission line infrastructure" and increase
DECISION MEMORANDUM
transmission capacity" to be able to continue to provide "safe, reliable and efficient electric
service to its customers.Id. Specifically, the Company seeks authorization to construct a 345
kV Transmission Line ("Transmission Line ) from an existing substation located southwest of
the Salt Lake City International Airport to a new substation located in Downey, Idaho. Id. at 2-
Rocky Mountain Power states that the proposed Transmission Line and new
substation fulfill Commitment No. 34(a) - Path C Upgrade, as described in Order No. 29973
approving the acquisition ofPacifiCorp by MidAmerican Energy Holdings Company pursuant to
the parties' Stipulation in P AC-05-08.
Rocky Mountain Power attached the direct testimony of John Cupparo, VP of
Transmission; Sharon L. Seppi , Managing Director of Construction Services; and Bruce N.
Williams, VP and Treasurer, to its Application. The following is a summary of their testimony:
The Project will enhance reliability of service for customers because it
will increase transfer capability between the east and west control areas.
The new Transmission Line will allow the delivery of power from the
Goshen Wind Project and future power projects the Company anticipates
that it will construct in Idaho and Wyoming.
The Project will allow the Company more flexibility in assessing planned
additions to its generation capacity.
Total cost of the Transmission Line and new Substation construction is
estimated to be around $750 million.
The Company has secured franchise agreements permitting construction
within "public thoroughfares" and has applied, or is in the process
applying, with local governmental entities for conditional-use permits and
other similar land use authorizations.
The Company will be able to finance the Projects either from its own
internal funds or through external capital sources and estimates that the
impact of the new Projects on the revenue requirement from Idaho
customers to be approximately 3%.
The Projects will not conflict with or otherwise affect the operations of
existing public electric utilities.
1 Rocky Mountain Power has filed a separate Application with the Utah Public Service Commission pertaining to
the portion of the proposed Transmission Line that will be located in Utah. Id at 3.
DECISION MEMORANDUM
ST AFF RECOMMENDATION
Staff has reviewed Rocky Mountain Power s Application and recommends that it be
processed through Modified Procedure.
CO MMISSI ON D ECISI
Should Rocky Mountain Power s Application for a Certificate of Public Convenience
and Necessity to construct a 345 kV Transmission Line and a new substation be processed
through Modified Procedure?
...........
A~~t
il Price
Deputy Attorney General
M:P AC-O8-03 - np
DECISION MEMORANDUM