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DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN JEAN JEWELL RON LAW LOU ANN WESTERFIELD BILL EASTLAKE RANDY LOBB DAVE SCHUNKE LISA NORDSTROM BEV BARKER TONYA CLARK GENE FADNESS WORKING FILE FROM: DON HOWELL DATE: MAY 30, 2002 RE: UNITED ELECTRIC CO-OP'S APPLICATION TO ACQUIRE THE CITY OF HEYBURN'S ELECTRIC SYSTEM, CASE NO. GNR-E-02-3 On May 6, 2002, United Electric Co-op, Inc. (United) filed an Application notifying the Commission of United's intent to purchase the City of Heyburn's municipal electric system. The Application was made pursuant to the Idaho Electric Supplier Stabilization Act (ESSA) and specifically Idaho Code § 61-333. On May 13, 2002, the Commission issued a Notice of Application and Notice of Modified Procedure requesting comments in this matter be filed no later than May 28, 2002. Only the Commission Staff submitted comments. United and the City of Heyburn are both electric suppliers within the meaning of the ESSA. The City has determined that it would be in the best interest of its citizens to transfer the City's electrical system to United. The City Council has approved the transaction which is to be submitted to voters on August 6, 2002. In the Application, the parties assert that the Agreement is in the public interest. The Application states that the transfer Agreement promotes harmony among and between electric suppliers and discourages duplication of facilities. As the Staff noted in its comments, United has managed the City's electrical system since July 2000. Adding the City's 1,300 customers will increase United's customer base and provide an improved economy of scale. Staff Comments at 2. Commission Decision Does the Commission approve United Electric Co-op's purchase of the City's Municipal Electric System? Don Howell vld/M:GNRE0203_dh2