HomeMy WebLinkAbout20220228Show Cause Hearing Transcript Vol I.pdfBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OE ATLANTA POWER COMPANY
SERVICE AND CUSTOMER RELATIONS
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CASE NO. ATL-E-22-01
BEFORE
COMMISSIONER ERIC ANDERSON (Presiding)
COMMISSIONER JOHN CHATBURN
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PLACE:Commission Hearing Room
11331 West Chinden B1vd.Building 8, Sui-te 201-ABoise, Idaho
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DATE:February 23, 2022
VOLUMEI-Pagesl-43
CSB RBPORTING
C e rt{ied S h o rt h and Rep o rterc
Post Offrce Box9774
Boise,Idatro 83707
csbreportine@yahoo. com
Ph: 208-890-5198 Fax: l-888-623-6899
Reporter:
Constance Bucy,
CSR
ORIGINAL
A P P E A R A N C E S.
For the Staff:Taylor Brooks, Esg.
Deputy Attorney GeneraL
11331 West Chinden BIvd.Building 8, Suite 201-ABoise, Idaho 83'120
For Atlanta Power
Company:
Xsrael Ray, Pro Ss
508 Auklet P1ace
Fairbanks, Alaska 99709
CSB REPORTING
208 - 890.5198
APPEARANCES
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INDEX
WITNESS EXAMINATION BY PAGE
Israel Ray(Atlanta Power)
Mr. Brooks
Commi-ssioner Anderson
Mr, Brooks
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Gene Haught(Atlanta Power)
Mr. Brooks
Commissioner AndersonMr. Brooks
Commissioner Anderson
Mr. Brooks
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31"
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INDEX
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BOTSE, IDAHO, WEDNESDAY, FEBRUARY 23, 2022, 2:00 p. M
afternoon.
hearing in
matter of
COMMISS IONER ANDERSON :
This is the time and
Case No. ATL-E-22-01l
again, good
for a show cause
referred to as the
Once
place
also
the investigation of Atl-anta Power Company
service and customer rel-at j-ons. The purpose of this
hearing is to al-low the Company to explain why the
Commission should not, No. 7, declare all- fees and
lnterest immediately due and lmpose penalt.ies; No. 2,
open a new investigation j-nto whether the Company is
providing safe and adequate service to its customers;
No. 3, consider why a receiver or other similar relief
should not be employed to operate the Company due to its
continued fail-ure to comply with Idaho statutes and the
Commission's regulatory authority to ensure the provision
of safe and reliable service.
My name j-s Eric Anderson. f '11 be the
Chair of today's proceedings and to my left is
Commissioner John Chatburn and to my right I yield to
Commissioner John Hammond that would l-ike to make a
statement.
MR. HAMMOND: Thank you, Mr. President,
Commissioner Chatburn. My name is John Hammond, the new25
COLLOQUY
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compLaint.
documents,
f was Staff's
Commissioner. Previ-ous to
General representing Staff
and a case involving Mary
this, I was a Deputy Attorney
and participated in this case
Drake who had filed a
attorney, helped prepare
Staff in that matter, which has
so in an abundance of caution,
since I was in an adversarial-
or abstain from passi-ng
a Commissioner and step aside
helped advise
led to where we are
I think it wouLd be
to recuse
today,
best,
myselfposition,
j udgment
and all-ow
on this matter as
you two to proceed forward.
COMMISSIONER ANDERSON: Thank you,
Hammond. I probably woul-d excuse you out to
Thank you. A show cause Order was issued
Commissioner
the audience.
by the Commission on January 24th, 2022. The Order
stated three claims against the Company. This hearing is
being held in order to al1ow the Company an opportunity
to address the claims against it. The transcript of
these proceedings wil-1 be added to the underlying record
in the case. The Commissioners wil-l- revi-ew the f acts and
the evidence in the record and make its final decision on
this case.
We do use a court reporter for these
hearings. Today we have Connie Bucy creating an official-
transcript of the record. Thank you, Connie. As an
initia1 matter, 1et's document for the purposes of the25
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record the parties present and their counsel. We'11
begin with Staff representation.
. BROOKS: ThankMR you, Mr. PresJ-dent,
Taylor Brooks. I'm afel-1ow Commissioners, fry
Deputy Attorney General
represent Staff in this
name 1s
for the State of Idaho and I
matter.
COMM] SSIONER ANDERSON :
Brooks, and for Atlanta Power.
MR. RAY: Israel Ray.
COMM] SS IONER ANDERSON :
Ray. Do you
Thank you,
Mr.
Mr.
I'm just here
Thank you,
MR. RAY:representing myself, I guess,
and Atlanta Power.
COMMISSIONBR ANDERSON: So you have no
counsel- here today?
MR. RAY: No, sir.
COMMISSIONER ANDERSON: Do you anticipate
having any witnesses to call today?
MR. RAY: Okay, Gene Haught,
Atlanta Power and helps us.
COMMISSIONER ANDERSON: Thank
he works for
Your
Mr. Ray, and you anticipate
THE W]TNESS:
on testifying
Yeah, I can.
yourself, also?
COMMISSIONER ANDERSON: I don't think
there's any other counsel that I missed here. To25
COLLOQUY
proceed, I'm going to go ahead and speak
be too
to testi-mony.
When I call your name,
be sworn
there won't many names to
cal-l-, you' 11 in and as you would in any other
identifyofficial court proceeding, I wil-l- ask you to
will include youryourself
spelling
for the record and name
and address. Mr. Brooks will actually do those
find that I've missedquestions. Unless my colleagues
this hearing,anything covering
not, we're going
Iet me know now or, if
to go
. Ray,
ahead and continue on.
Mr I would like to call- you to the
wit.ness stand for some questions, please.
ISRAEL RAY,
produced as a witness at the instance of the Atlanta
Power Company, having been first duly sworn to tell- the
truth, was examined and testified as follows:
EXAMINATION
BY MR. BROOKS:
A Thank you, Mr. Ray. I would like to first
ask that what you just did,
the whole truth, the truth,
did you take an oath to tel-1
and nothing but the truth?
A
o
WelI, sure, yes.
Thank you, and could you spell your first
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4 RAY
Atlanta Power Company
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and last name for the record, please?
I-s-r-a-e-I, and then James middle
is Ray.
A Israel,
name, and Ray. R-a-y
O Thank you, and what is your affiliation
with Atlanta Power Company?
A Irve been president of it now
know, 20 years or somethi-ng, since Stevenson
O And can you please state your
where you resj-de for the record?
for, f donrt
dled.
address and
A The address I'm usj-ng is 508 Aukl-et
and then I'm retired, so
Place,
I helpEairbanks, Alaska, 997 09,
my nephew, so sometimes I'm up at the ranch
Oregon, and sometimes I'm down in Arizona at
down there. They run cattle.
MR. BROOKS: Okay, thank you.
in Ironside,
the ranch
We have no
further questions at this time, Commissioner, and f turn
it over to you.
COMMISSIONER ANDERSON: Thank you,
Mr. Brooks.
EXAMINATION
BY COMMISSIONER ANDERSON:
0
this specific
Thank you,
to the five
I'm going to keep
that we asked of the
Mr. Ray.
questions
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208.890. s198
5 RAYAtlanta Power Company
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Company
A Yes.
O And your written testimony 1s now part of
this record. You do not have to read that. We have
copies of that. We have gone through thatr so we're not
going to reguest you to go through that and read that to
us. V(e may have questions in regards to some of those
things, but f want to go ahead and lead with just a quick
statement to you, is that on May 10th, 2079, the
Commj-ssj-on granted the Companyrs petition for
reconsideration in Case ATL-E-18-01 based on the
Company's desire to facilitate the sale of the Company's
system, Order No. 34334.
The Commission found the public interest
may be served by such a sa1e. The Commission reasoned
that imposing civil penalties cal-Ied for in the Order
No. 34296 could impede the sal-e and negotiation. Because
the Commission wi-shed to encourage the Company's efforts
to sel-1 the system to a buyer who may be better served --
to better serve the customers, the Commission found j-t
reasonable and in the public interest to at least
temporarily suspend the Company's duty to pay the civil
penalties.
However, the Commission did caution the
Company that it may revoke the suspension of the
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6 RAYAtl-anta Power Company
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Company's payment obllgation if the Commission later
found the Company had not obligated and complied with the
terms outlined in Order No. 34334, and my question, f'm
going to move here to the No. 5 question that I want to
ask you, first of all, you were i-n negotiations with the
Atlanta Association, Efectrj-c Cooperative Association,
and my questi-on to you 1s when did you end those
negotiations ?
A Well, Irm not posj-tive that they ended.
We talked to John Howard, he owns the Beaver Lodge up
there, somewhere during that
"You guys need to" see, I
f have deeded back and forth
acres of ground that f bought
because they were telling me
off of there if I didn't want
and I told John, I says,
have i-t's been said that
up there. I have about five
from the Stevensonrs estate
to get Atlanta Power stuff
to buy it. I bought j-t. I
is a l-ittle chunk in thebought the
middle of
put there
give me an
curtailed,
five acres. There
it that Atlanta Power has always had and it was
to
Mr. Ray, this is specific
Too long?
The answer specifically that I'm looking
o
A
o
for is if you are no longer in negotiations or if you can
when those negotiations were
the question. I don't need to know the
idea of
thatrs
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1 RAYAt1anta Power Company
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history of
asked him, I
generator and
John Howard,
says, "If I don't own
all that stuff on my
"You guys need to
it to, " and that
it, I donrt
r just
want the
property," and I told
Let me know where you're
was in the sprj-ng and
was nothing curtail-ed.
the land purchase.
A Okay, they werenft curtailed.
gor_ng
that's
to move
the last I know. There
It's just nobody has got back to me.
O So they've never even at one time
addressed the question of further conversatj-on with
you?
A No, no. Someone suggested that I should
move it I heard through the grapevine. It wasn't direct
conversation to me, but f'm not doing that. Itrs
something that the co-op would have to do and the l-and is
mine. I didn't deed nothing back and forth like these
accusations that are going on. I bought it at a sale for
$26,000 from the Stevenson's estate at an auction.
O Thank you, Mr. Ray. The reason I'm asking
these questions is because the Commission dld temporarily
suspend the fines that we had on you and there were
certain criteria under Order No. 34334 that you were to
abide by and follow for those to remain in that status of
temporarily suspended.
A Yes.
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B RAYAtlanta Power Company
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O And the Order specifically said if at any
time Staff perceives sale negotiations are not
progressing or are in good faith or that Atl-anta Power is
not responding to reasonable requests for information or
there is no indication of progress toward the sal-e of the
Company's assets,
our attention for
then Staff should bring these issues to
our consideration in reinstating the
Company's obligation to pay the 12,000 1n existlng
penalties and the $2,000 per day in additional penalties
as specified above, and so my question is did you make
any efforts yourself to continue the negotiations since
spring?
A Yeah, that's yes, I did,
that board. He
and so I
because see,
works for me,Gene Haught is
but he's on the
forth with Gene
some different
actually on
new board
and f says, "Wel1,
options, " and they
was talking
we need to
were talking
the dam,
back and
figure
about
thatrs
out
moving it down to the dam, but down at
right next to my reservoir. Putting a
generator that close wil-l- probably be
yeah, w€ were talking, but it's not
their obligatlon t.o figure out a place
mine.
diesel tank and a
impossible, but
that's if it's
to put it, not
difference of opinion on the
the Company was directed to
O Itmaybea
proper obligation, because
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9 RAY
Atlanta Power Company
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negotiate, so yourre aware of that?
A Yeah, I understand that, but I don't know
where to put it.
O Very good, so the first question, then, is
about whether to impose the penalties and then whether or
not we should impose additional penalties, and
apparently, through the investigation of Staff, there's
been findlngs in their attachments that there's stil1
many obligations, including the payment of your gross
interstate operati-ve revenues on a timely fashion. You
failed on those and can you address your concerns with
additional fines?
A
negotiating, I
sitting there.
living in Arizona
died. I'm being
WeII, and then I
Well, the first group if we are still
think it would still- be moot. That's just
The second group, this spring I was
COVTD and I almostand literally I got
honest. I was in bad, bad trouble.
thought weI1, I want to come I was
up
and
was
to Atlanta and deal- with this stuff.
I had an abscess the size of a
wanting to come
I got to Boise
baseball and I
and I coul-dn't
back in Atlanta
nephew's ranch
better, so what
go. r
with
and in a couple of months
I'm getting at is I have
went to my
I was doing
tri-ed to make an
getting IVrs and shots of antibiotics
went to f couldn't be 60 miles
those issues, so I
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RAY
Atlanta Power Company
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effort, but things just didn't sometimes they don't
work.
O And I think the failure there is not
necessarily your health, and I apologize that you were
going through those hard times, however, we are limited
to the number of people we can contact or your members or
your customers can contact, also, and we've issued four
different summonses ourselves as a Commission, and, you
know, you have obligations through your ownership of this
Company to respond to those things, and when you don't
over months, not just the two months that you may have
been sick but over months and periods of time, so we do
have to take action and consider what the process should
l.r a
A Yeah.
O f 'm going to
fines for the moment and I'm
move away from the pending
and that I s where you answered
going to go to j-tem No. 2
the question of whether an
not the Company isinvestigation into whether or
providj-ng
really --
you
in
safe and adequate servj-ce to its customers, you
you basically said whatever we want to do, but
brought up the fact that
that statement. I'm not
you may have new purchasers
quite sure what that has to
do with an investigation
A WelI, the
that we shoul-d do or not.
new purchasers are Nick back
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208 .8 90 . 5198
RAYAtlanta Power Company
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there and he's a lineman and he's been helping us and so
that's why I brought it up is we've been see, the
problem with this is I know I am a -- werre a utillty and
stuff, but when Dave GilI went to South America, if I --
I'm supposed to do a l-ot of things, but a l-ineman is
$130,000 a year. We got Nick has been helping us and
with Gene Haughtr we've been doing repairs and doing more
and fixing some of those problems. I named them there
and Gene can telI you more about what problems we fixed,
so thaL's how it is, is the purchaser is also -- wel1,
he's head of the l-lneman college out here at Northwest
Lineman Schoo1 in Meridian, so he's very competent, so I
guess that's how it ties together.
O I appreciate that , if thatrs your answer
to the invest.igation question. There are a lot of
issues, safety issues, sti11 that are existing there and
it would seem to me that if you have the opportunity to
have an investigation that would help perform you to
operate a better business, you would take advantage of
that and not try to think that new owners are simply
going to solve the problems because they need to be
identified.
A That's why I said if you want to. I
didn't say no, don't do it. I have no issue with any
help that Irve ever gotten from the Public Utilities
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RAY
Atl-anta Power Company
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Commission, because therers been a l-ot of help and Terri
wil-l tell- you. I come to her and I ask for help and she
helps me
O Eor
we were notified of
this month and here
of this has been
the record, Mr. R"y, the
new owners potentially
we are on the 23rd, so
going on for many --
Nick was doing alJ- this
new owners,
on the 17th of
it's not a lot
A No,
don't know, a year or two now. See, he's been helping us
and he finally said weIl a conversation got brought
stuff for, I
you don't just go ask people if
or do something, but Nick said
Gene Haught, he sai-d, "Do you
to help him more with the
up, do you
knew about You know,
something
effect to
think Israel- woul-d and this is the first I
it.
they want to
something to
think Israel-
Company? "
wou]d want us
buy
the
And I went, "Oh, weII, yeah, " and they
came to me even. They come to me and said, "We'd }ike to
help you and here's what we would l-j-ke to do. Are you
interested? "
And I looked at that and I said, "Yeah,
sure, that will work," so that's the way it happened.
O And you have an intent to purchase from
them --
A Yes.
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RAYAtlanta Power Company
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signed by all
And we wanted to
just messing around, that that
ir.
purchase,
your time
your time
would --
parties ?
show you that we werenft
will work and we can do
O
A
O Well, that intent is not a contract to
though, and would you anticipate -- what would
frame if we were to consider that, what is
frame for a contract to be developed that
A It wouldn't It woul-dbe messing around.
of time.be in a good decent
O And
idea?
A
something, not
amount
don't
l-ike tomorrow or I mean, give me an
No, I don't know. A couple of months or
you know, you've got to have
do things tomorrow. They have to look atattorneys
it and put a fair contract, sotogether
Bohner and
me to guess that,
back and forthwhen Tony
when the
times. He told me,
times I've'r -- he's
us were negotiati-ng
dams failed, Tony sent our contract back 18
"That's the
my Iife, " so
good faith,
a
he said, "Israel, thatrs the most
Bohner Chasan & Walton and he said,
back inmost times I've ever sent a contract
hopefully, you know, Lf people negotiate in
things can get done in decent order.
And I coul-dn't agree more, however, but we
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RAY
Atlanta Power Company
25
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donrt have a
negotiations
A
and stuff, I
history of
that have developed
I showed
that here. We have some
The results
knew that. a lot of that
through good faith.
you of the appraisal
wasntt accurate;
not
$2oo, oo0
at about 70,000.
It was $140,000
o Well, from what I've read is that you guys
did negotiate on an appraiser and you agreed upon a
person.
A But on my farm whenever I get an
appraisal, the guy says, "Okay, these tractors are worth
this, this is worth this." AII that appraisal consisted
of was, "We11, Linda says there's about 50,000 a year
coming in. Take 10 times that, thatfs 500,000. Then you
take a couple hundred thousand off for repairs and you
get 300,000," but it did not include any of our accounts
receivable by the way, so -- but whose fault was that? I
don't know, but when I was doing these gross operating
reports, I went, "Wel1, why are we talking 50,000 here
and then why are we showing 70 or 80?" And this year our
operating is 84,000. I did turn that in and I'm going to
file it today by the way.
O The appraisal?
A No, oo, with Terri Carlock. What do you
to fix the lines when in reality j-t's coming in
You know, there's that's reality.
off of that one item.
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208.890.5198
RAY
Atl-anta Power Company
25
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call it? The gross operating revenue report; right,
Terri?
O I'm qoing to
questions, Mr. Ray.
A I'm sorry, I
0 Right, so do
in that tentative contract
Mr. Haught and Johnes, you've
rate and value, is that stil-l
on the 17th. Is that still- an
numbers that you gave us?
A Yeah, it does.
go ahead and ask the
just forget things.
I. You have mentioned that
that you want to prepare with
come Lo terms with time and
firm? That was just signed
agreement with those
The reason I turned that
j-n and this is for your
I turned it in because
talking about is
annuaf revenue.
accountants. We
table, but
aside, we
consideration because
we're talking 84,000,
you guys
not these
different numbers, and I'd like for the Commission to
look at that, because what Gene and Ni-ck and us are
a term that would justify 36,000 in
You know, we're just -- werre not
were just negotiating, you know, at a
there's some issues there, but that being set
j ustcan come up with a good number. I'm
trying to I'm just trying to get some revenue for the
next 15 years. I'11 be 7B when it's done and I'm wiIli-ng
to carry it by the way. Irm carrying it for the Company
once more.
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O I don't want to be 78 when this is done,
though. See, thatfs the problem I have.
A We're not talking done. We're talking
when I get my payments.
O Well, okay, I understand, but in your
written testimony, though, it conflicts with what your
agreement is, because in your written testimony, you talk
about the $365,000 of purchase, but then you sdy, "which
1s far bel-ow the final numbers on the appraj-sa1"
A Yes, it is.
O "which still needs to be put together, "
so are you arguing with the agreement you've submitted
into the record, that you already submitted?
A No, f'm not arguing. Irm just showing
that even though the appraisal is higher, I'm accepting
that number.
O Okay, let the record show that. Okay,
we're going to move on from the investigation. The
Commission will determine that in their Order. The next
question that was delivered to you was appoint a receiver
or similar relief,it shou]d not be employed to
fail-ure tooperate the
comply with
regulatory authority to ensure the
rel-iable servj-ce, and your comment
why
dueCompany to its continued
Idaho statutes and the Commission I s
provisions of safe and
is that just because
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of the ongoing saler w€ shouldn't have to do that.
A Wel-I, that answers the issues of safe and
reliable power. They're helping to -- Nick knows what
he's doing. He's helping us to take care of that part,
yes, that's what I meant.
O Okay, and the
is further ordered that the
information on how customers
next item that we had was it
Company
should
shall provide contact
contact the Company
hearing, which youon services issued at the show cause
have provided that in writing.
A Yes.
O Howeverr orr your address i-n Fairbanks,
oftentimes nobody ever gets a response and oftentimes
when people do call-, there's a recordj-ng that does not
allow any more messages. The recording box is always
fi-11ed up, so have you tried to remedy those issues?
A Wel-I, that's why I put my email in there
and that's why I put Sara's number in there. Some places
I stay, l-ike up at
if you're within a
I put Sara's number
something if you
says, "Dad, you've
that's not a and
Nobody had that. I
the ranch, we only have cel1 service
hundred or 200 yards of the house, so
and Sarah knows where Irm at and if
guys or anybody contacts me and Sara
got to get back
I put my email
didnrt realize
here, I
address
that, so
call-. " I know
by the way.
now I
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wouldnrt have an excuse. You email me and
fet'srr *- and I put it there for everybody
call me or not call me, email and I will-.
MR. BROOKS: Mr. President,
clarifying question regarding that piece of
COMMISSIONER ANDERSON: Yes.
sdy, "Israe1,
in this room,
if I may ask a
testimony.
MR. BROOKS:
you please identify who Sara
THE WITNESS:
MR. BROOKS:
THE WITNESS:
MR. BROOKS:
the record, please?
THE WITNESS:
MR. BROOKS:
Thank you. Mr. Ray, could
is for the record?
My daughter.
And what is her last name?
Sarah True.
And could you spell that for
T-r-u-e.
Could you spel1 her first and
last name for the record, please?
THE WITNESS: S-a-r-a T-r-u-e. I didn't
do it wrong, did I, Matt? Sara will have me
MR. BROOKS: And where does Sara reside?
THE WITNESS: 32L South Cotterell. You've
got that, don't you? ft's j-n Boise here. Itrs right
down f rom the mal-l-.
MR. BROOKS: Thank you.
A BY COMMISSIONER ANDERSON: Thank you,
Mr. Brooks. Many of these issues we're trying to
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address, Mr. Ray, j-s to try to determine whether or not
these fines will be rei-mposed or we add additj-onal fines
to this problem, so it's important that we have good
dj-rection from you that this is going to proceed, and
since you now have a new contract, one of the questions
that you were to address is that are you still in
negotiations with the AECC and it doesn't sound l-ike you
are if you have a new contract.
A We1l, yes, that would be accurate, yes.
O Thank you. That answers that one. The
other the next item I I 1l- go to is it is further
ordered that the Company shal-I provide copies of any
appraisal, which we discussed earlier, and you do not
have a written copy of the appraisal?
A No, not with me. Maybe it's in I donrt
know. I'l-l- just say f don't know where it's at right
now, because I didn't know I was going to have to come up
with it. Irm here, not in Alaska, but
real si-mpIe like I was discussing.
O Mr. Ray, the question,
the appraisal 1s
though, that was
asked of you
copy of the
A
a
A
and it was required of you is to bring a
appraisal
Yes.
to the show cause hearing.
I can't find it.
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Atlanta Power Company
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O Okay, so thatrs the answer, then?
A Yeah.
O V[el]-, the next question, Mr. Ray, and
itrs I'11 just read the question. "The Commi-ssion
directs the Company to provide the Commission with a
response at the Show Cause Hearing to explain how it will
address the numerous issues with the Company's service
reliability and system as set forth in Staffrs report,
dated December 28th, 2018, and attached hereto as
Attachment A, including, but not limited to, those parts
of the Companyrs system discussed in the findingsr" and
in your statement here, you have said that you would l-ike
to have Gene respond to those things.
A Yes.
COMMISSIONER ANDERSON :
and dismiss
and we may
swear back
witness.
from the witness
you back and we
I'm going to
box there for
wonrt require
go ahead
a moment
you to
asa
you
call
in and i-f we could cal-l Gene Haught
(The witness left the stand. )
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GENE HAUGHT,
produced as a witness at the instance of the Atlanta
Power Company, having been first duly sworn to tel1 the
truth, was examined and testj-f ied as foll-ows:
EXAMINATION
BY MR. BROOKS:
A Thank
state your first and
record, please?
your Mr.
last name
Haught, could you please
for theand spe11 it
A
A-r-n-o-1-d,
o
A
83716.
o
My proper name is Arnold Eugene Haught,
Eugene, E-u-g-e-n-e, Haught, H-a-u-g-h-t.
Where do you reside?
235 West Yuba Vista Drive, Atlanta, ldaho,
And what is your affiliation with Atlanta
Power Company?
A Itm managex, I guess.
MR. BROOKS: We have no further questions
at this time.
COMMISSIONER ANDERSON: Thank your
Mr. Brooks.
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EXAMINATION
BY COMMISSIONER ANDERSON:
O I understand you're a f iref ighter, fj-re
captain.
Fire chief.
I was a fj-re chief, a1so, so we have that
l-n common.
A Yes, sir
O Years ago back when I was a littIe more
spry. Wel-come .
A
o
A
o
all, I'm just
negotiations
property with
A
o
A
Thank you, sir.
f appreciate it
going to confirm
and Mr. Haught, fj-rst of
that you have been in
with Mr. Ray on the purchase of this
you and Mr. Johnes?
That's correct.
Is it Johnes or .Tohnes?
Johnes.
a Johnes, thank you, and you are continuing
those negotiations, but you antj-cipate
A I thought we were done.
O You thought you were done, okay. Do you
anticipate that you could finalize that agreement within
30 days or what do you anticipate if --
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A I would l-ike to be able to have it
finalized by the first of April, but agaj-n, as Mr. Ray
explained, I can't speak for how long it's going to take
attorneys to get it done.
0 Right, but you would like to see this move
forward quickly?
A Yes, sir.
O Thank you, that's what I wanted to know.
Let's go through a few things that the Commission did ask
that you've been taking care of the system. Are you a
certified Cat repai-rman, also?
A No, sir.
O We11, 1et's just go with the first item
that we have. I wanted to ask about the low hanging
service lines.
A That was taken care of . The 1j-ne you're
speaking
agar-n, so
here that
of was taken care of four years ago.
0 Okay, apparently, it was complained about
we did not know that. It was part of our list
we have.
A I think in that complaint that you got
again, it was just in that complalnt. I don't know that
I ever addressed that with the individual- that filed the
complaint that we had taken care of that, and it is al-so
in our five-year plan that that whole area in there is
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going to be replaced.
O So thatts aI1 lines and poles?
A Yes, sir.
O So the next question I have was the poles
that are rotted at base and leaning, you're
A We're already in the process of replacing
those.
O And did Staff work with you to
the poles and transformers that were in need
identify
of repair?
A Staff?
0 Yeah, our Staff.
A No, sir.
O Our Staff did not?
A No, sir.
0 One thing that. our Staff did identify was
that we did have antiquated transformers and leaky
transformers and some of those I bel,ieve are old or
probably have PCB issues.
A As far as Irve been able to determine,
none of our transformers, the ones that are the ol-der
ones, t.hey're pre-PCB, but I have since gotten test kits
and will be testing any transformer we take down, because
the company that we're buylng transformers from will- t.ake
the ol-d transformers as long as we've tested the oil.
O Okay, and do you have a stockpile of
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Atlanta Power Company
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those, because have you ordered the transformers
already?
A
the system?
A In the
have that information,
A Thatrs
V'le have some on the wdy, yes.
How many transformers do you have total ina
system tota1,
but I can get
okay. The
anything
Irm sorry, I dontt
it for you.
question was they're
is hard to 9et, likehard to get
transformers
A
o
right now,
delivered.
I
I
just ordered some.
saw that Mr.Ray mentioned in
he got some last
his
writing, in his answer, that
guess my question is if you
long have you had additlonal
you just now order them?
wetve
week, and I
have these identified, how
transformers on-site or did
A No, we used up what we already had, so
been replacing transformers.
o
supported by a
rooflines?
A
0
A
hanging wire
A11 right, your service drops to meters
piece of wood above the customers'
That is that same wire.
The same which?
The wire you were talking about, the low
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o
A
Thank you.
that's the same one.
O And the spij-lway
were inoperable and the control
the reservoir was indeterminate.
A We1l, I read that
gates that control the fl-ow into
and wel-Ir we don't have
our pond.
I guess where people
in the fall- when we do
stakes
gates, it
and flow
says that they
of water into
Right.
We only have gates that control water
exiting the pond.
0 Correct.
A They're operable.
think that they're not is because
our fall- cleanJ-ngr we take metal and prop the
have to run agates up for the winter so that we don't
all winter Iong, because we're not putting the
in the winter. They never go down, so there's
o
A
compressor
gates down
no reason that compressor
will- allow the
to run and there are leaks in
gates to go down if wethe bladders that
conserve
so we put
turn the
on power
sticks
didnrt run the compressor all winter,
tear on
so we I re trying to
and wear and that compressor,
up, and thenunder the gates, prop them
so that we don't wear it out.
had just recently purchased a new
compressor off
O And you
compressor?
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A Yes, sir. We just spent about $4,000.
O Very good. Going back to the question of
appraisals that Mr. Ray and I had discussed, have you
anticipated doing an appraisal through your purchase or
are you -- because it sounds l-ike there's going to be a
fi-nancing through Mr. Ray. He's going to actually
finance this through an agreement.
A Yes, sir.
O However, I think Mr. Johnes or one of you
folks identified a $70,000 improvement that's going to be
needed relatively soon.
A That's part of our five-year pIan, yes,
sir.
appralsal
you need
to cash.
a So my question, I guess, wouJ-d be an
is probably still an important thing to have if
to go borrow money, unl-ess you have the access
A We do.
O And you do?
A Yes, s j-r.
O Okay, and just for the record, Mr. Haught,
if there was going to be a purchase, that would have to
be a separate filing outside of this case that we're in
now and that would be the responsibility, I believe, of
the purchaser to file that, so just so you're aware of
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that. If you continue to move forward with that desire,
then you need to file with the Commission that purchase
agreement.
A Yes, sir, we're planning that and we
tal-ked to your Staff about that. We were at this
point part of the issue with not being able to give you
an exact date when that contract could be signed was we
wanted to -- we didn't want to spend a whol-e bunch of
money on lawyers if you were going to just say no, you're
not doing that, so we're hopeful that you're going to
give us a go-ahead soon so that we can get these lawyers
moving quickly to get thj-s contract done.
O And I'm only one-third of the discussion,
so there's still parts of my braj-n I have to deal with,
too.
A Yes, sir.
O All- right, the last item, and this is a
question, I noticed in the contract you're talking about
a $90 a month .Iease agreement, too, j-s that for the
propane not the propane, the diesel tanks?
A No, sir. Itrs not only the dj-ese1 tanks,
it's al-so where all the equipment is stored on Mr. Ray's
property.
a So that would resolve the issue of
long-term leasing? You woufdn't have to go buy new l-and
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HAUGHT
Atl-anta Power Company
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or put it down by the dam?
A That's correct.
0 That's
don't think you would
AOh,r
get a permit.
O Right,
encouraging to know, because I
get a permit for
know for a fact yourre not going to
filters, that kind of thing. The
Cat up was because we werenrt able
right. How dif f icul-t is it to get
a Cat certification for maintenance? It sounds like you
you bringguys spend a considerabl-e amount of money when
those maintenance men up from Caterpillar.
can do the baslc maintenance,A We1l, w€
changing oils, changing
reason we had to bring
have them come un.l-ess I wanted to
to diagnose the problem in
do that, and
the computer and we had to
school for generation,
them come and do that
which I do not, we had
go to Cat
to have
and then they found a faulty
voltage regulator.
COMMISSIONER ANDERSON: Well-r we
basically -- the questions that were submitted to the
Company, the answers have been in writing and werve heard
public testimony and answers to those same questions. Do
you have any questions of the witness?
MR. BROOKS: Yes, Mr. President. We have
just a couple of clarifying questions.
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Atlanta Power Company
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COMMISSIONER ANDERSON: Certainly.
FURTHER EXAMINATION
BY MR. BROOKS:
O Mr. Haught, have you seen the Staff report
from the Commission Staff that was drafted in 2018 that
detail-ed a l-ot of the issues that were filed in the
compJ-aint in the original case?
A Yes, sir.
O And have most of those issues within that
Staff report been addressed, to the best of your
knowledge?
A Not all, but we're working towards them.
The safety issuesr we have a young man coming up to give
us a bid on that and/or even to start work on this summer
to address the safety issues at the hydro building and at
the water intake.
O To the best of your knowledge, are those
the only issues that remaln to be addressed or could you
identify specifically what other issues have not been
addressed that sti1l need to be addressed for the
Commission?
A There's a lot of poles that still- need to
be replaced and l-ines that need to be upgraded and we're
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working on that. We replaced some lines
sunrmer. We already are in the planning
replacing some lines on Pine Street and
we are waiting to talk to
because it's going to be
approval to cut trees, so
to get those trees down.
the landowner
this last
stages of
transformers and
to be able to
a new 1ine, he has to give us
we're in negotiations with him
do you
or all-
there
trying
whj-ch are antiquated
on one transformer, and old
get all the o1d copper
0 And upon your best estj-mate, when
expect to complete the majority of those repairs
of those repairs?
A We have a five-year plan to get 80
percent. There may be some oddbal-I poles here or
that we don't get to in the five years, but we're
to address the
trans formers,
copper lines.
fines out of
maln concerns,
too many houses
We're trying to
the system.
And so is it
and Mr. Johnes,
to support the
today?
Along with
o
between you
wherewithal
speaking of
A
yes -
your testimony today that
you have the financj-al
five-year plan that you're
the income from the system,
MR. BROOKS: We have no further guestions,
Commissioner.
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COMMISSIONER ANDERSON: Thank you,
Mr. Brooks.
FURTHER EXAMINATION
BY COMM]SSIONER ANDERSON:
0 Mr. Haught, you were also a member of the
potential co-op board at one time?
A Yes, s j-r.
O Is it your understanding that -- we did
get a letter today from the attorney that represented
that giving detaj-led informati-on why we shoul-dn't believe
anything we hear, but are you do you antici-pate that
they have any interest in continuing forward with the
purchase?
A I'm sure they have j-nterest. f have a
personal opinion. I don't have facts, but I have a
personal opinion, but Irm sure they're wanting to move
forward. Why it's taken so long, I can't answer you.
O Okay, and just so you're aware, if you and
Mr. Johnes contj-nue forward with your purchase, you do
realize it would be still be cl-assified as an
independently-owned utility that would be regulated by
the PUC?
A And that's what we wanted.
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COMMISSIONER ANDERSON :
this seems quick, but we only had so
Very good. I know
many questions and
answered. I'm going to do
for any questions?
Not Mr. Ray. I have one last
so many ways
you need to
to have them
cross Mr. Ray
MR. BROOKS:
clarifying question for Mr. Haught.
COMMISSIONER ANDERSON :Please.
FURTHER EXAMINATION
BY MR. BROOKS:
O Could you teII the Commission about when
you started workj-ng for Atlanta Power Company as its
manager and when you started upgrading the system?
A I started taking care of the system whil-e
Mr. Ray was si-ck. I think t.hat was in'18 and I finally
got to speak to Mr. Ray directly, because his brother was
kind of in the way for a littl-e while about a
year-and-a-ha1f later, and once I was able to speak to
Mr. Ray directly, he essential-ly told me he wanted me to
just take care of the system.
O And is it your opinion that after
completing the five-year plan that Atlanta Power Company
will- have safe and reliable service for the most part,
give or take the oddball things that you mentioned
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direct or to redirect to Mr.
MR. RAY: The
earlier?
A Yes, sir. I think we'l-I be in far better
shape than we are now, yes.
MR. BROOKS: Thank you very much. No
further questi-ons.
COMMISSIONER ANDERSON :Thank you,
Mr. Haught, and Mr. Ray, do you have
Haught?
diesel
any questions to
tank, thatrs Atlanta
Power's. The only thing we're talking about them renting
and we wou.l-d -- I woul-d want a year-to-year lease,
because it's my property, is the property there where the
generator sits and so that's I'm just clarifying that.
Someone said the diesel tank, is that what they're
diesel generator and tank are Atlantarenting.
Power's.
No, the
They don't have to rent them from me.
COMMISSIONER ANDERSON: Thank you. Yourre
just renting the land?
MR. RAY: I own the 1and.
COMMISSIONER ANDERSON: So you're renting
it to them?
MR. RAY: But Ird like that to be on a
year-to-year basis because
COMMISSIONER ANDERSON: Thank you.
MR. RAY: it's my land.
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HAUGHTAtlanta Power Company
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COMMISSIONER ANDERSON: WeIl, it's
important that we have this information, because these
fj-nes are pending and unless we have a satisfaction as a
Commission as a wholer we wiLl deliberate on this
privately and we will determine what we believe to be a
true and correct course forward. Health and safety of
your customers is vitally important to us and we want to
make sure that al-l- the dots are being dotted and all- the
T's are being crossed, so that's part of the thing.
We'll go ahead and excuse you, Mr. Haught. Thank you
very much.
THE WITNESS: Yes, sir.
(The witness left the stand. )
COMMISSIONER ANDERSON: Counsel, do you
have any other witnesses?
MR. BROOKS : Mr . Pres j-dent, we ' d li ke to
call Mr. Ray back to the stand for a couple of clarifying
questions regarding the financing.
COMMISSIONER ANDERSON: Thank you,
Mr. Ray, and you've already been sworn in.
MR. BROOKS: If itrs okay with you, I'1I
go ahead and re-swear the witness in just so we have the
affirmation of both on the record.
COMMISSIONER ANDERSON: Okay, thatrs fine.
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HAUGHT
Atlanta Power Company
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ISRAEL RAY,
produced as a witness at the instance of the Atlanta
Power Company, having been first duly sworn to tell the
truth, was further examined and testified as follows:
FURTHER EXAMINATION
BY MR. BROOKS:
purchase
tel-l- the
default
O Regarding you carrying the note for the
by Mr. Haught and Mr. Johnes, can you please
Commission what would happen if there were a
on the loan? If Mr
to default on the note that
Haught and Mr. Johnes were
you are leasing to them, what
would be your position then?
A Wel1, I asked Terri Carlock about that.
When we used to borrow money from Eric Alburde
[phonetic], we did a l-ock box agreement, but I don't know
without asking an attorney how to secure it, but just
from what f know about Nlck Johnes, I donrt think thatrs
an issue. I don't think he wou]d ever l-et it fail-. I've
been toId, you know I've been told I know he's got
a l-ittle extra money, okay.
O So is it your testimony
a defaul,t
that you do not
have a plan for
A I'm tel-l-ing you we'Il get one if an
the event of on the note?
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208.890.sr_98
RAYAtlanta Power Company
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attorney will teII me how to do it.
O Okay, thank you, and what
with Mr. Haught or Mr.
A Liability meaning what?
O In the event that Mr. Haught or Mr. Johnes
is injured and, therefore, incapacitated to continue
working and maintaining Atl-anta Power, do you have a plan
j-n place for a workers' compensation plan, any type of
j-nsurance with you carrying the note?
A Wouldn't that be thei-r deal?
O That's my question.
A The questj-on, I just asked if that
wouldn't that be their deal, not mine?
O Is it your testimony that it would be
Mr. Haught and Mr. Johnes' responsibility?
concerns, have you
you addressed that
A
o
A
can I add just
million dollar
Boise National
addressed that with an
about liability
attorney? Have
Johnes?
Yes, yes.
Okay thank you.
But we do have and we have to pay it
property and gets hurt, there's
of coverage for that.
O The last question
one thing? We do
liability policy
Forest. fn case
have on the dam a one
thatfs required by the
somebody comes on that
a mil-Iion dollars worth
I have is you stated
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RAY
Atlanta Power Company
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earlier that you were to you desired to have a
year-to*year lease regardingt your 1and, what would happen
to Atlanta Power Company if you revoked that lease?
A Well, I don't know how to put this simply.
I'm not a jerk. I'II work with them. You know, if f --
if they cou1d find a spot to put it maybe somewhere
around town, it would be nice to move it.
a Just to clarify, the I'it" is the
generator?
A ftrs the diesel generator and the dj-esel
fuel tank.
a Thank you.
A So I'm not if they had to move lt, then
I have a house up there,
my pipes freezing up, so
whole deal-. That' s kind
diesel backup.
interest in this
of what somebody is
we wouldn't have
too, by the way
I have a vested
friendliest
liking some
that happens
and I don't like
misslng here.
there. Wel1,
Irve got a $400,000
itfs almost done. I
people need to understand.
what's best for the whole
I farm and stuff. I get
Gene and I like Nick and when
house and stuff up
have property and thatrs what
I want what is best, because
town is also best for me, and Irve l-ived there of f and on
and I want to conti-nue 1t and this seems like the
avenue, because
people. I like
and that's happened a llttle too much in
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RAY
Atl-anta Power Company
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Atlanta Power's time, I get personally invested in
that.
O So based upon your previous testimony,
then, if the Commission were to require a more solidified
lease agreement for a longer term, would you be open to
that or are you firmly set on a year-to-year basis?
A Oh, boy. I don't know. It's not just the
generator. There's poles and transformers and stuff
piled all over. When I was doing it, that was my problem
if it looked
o
work with the
an agreement
the citizens
your land?
that I've worked
further
ug1y.
Let me rephrase. Would
Commission and Commission
that best fits the benefit
you be
Staff
willing to
to iron out
of Atlanta Power,
of Atlanta, and your own desires regarding
A I think I've proved that in my lifetime
Mr. Ray,
0 Yes or no, please.
A Yes, yes.
MR. BROOKS: Thank you.
questj-ons, Commissi-oner.
COMMISSIONER ANDERSON :
these are J-mportant questions,
I donrt have any
Thank you, and
because the
Commission, believe
Power do well and be
desires to see Atlanta
and I know that we have
it or not,
healthy,
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RAY
Atlanta Power Company
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many people here that probably came down from Atlanta and
I know that's a long trip for folks to travel. I've been
up there only one ti-me and it can be treacherous. Even
now this time of year, there's a lot of snow up there f'm
sure, so it's important that
all the customers, of Atl-anta
we secure for the customers,
Power that they have safe,
aboutreliable servi-ce and we're going to be adamant
deliberating on this very
take on this, and all- the
testj-mony thatrs been given today are going to be a part
of that Order, so I l-ike the idea, I heard of April 1st
as being a potential.
If there were to be a contract, I wouldn't
be surprised to see something of that nature in an Order
when it does come out, so with that, I thank you for your
testimony and you are excused.
that, so we
quickly and
action that
hearings
They' re
you get
be some
covered,
are going to be
we're going to
werre going to
determine what the course of
fol-ks here don't think that we
(The witness left the stand. )
COMMISSIONER ANDERSON: Show cause
are different than a lot of hearlngs we do.
basical-ly to the point and kind of concise and
to the answers and then you move on. There may
things that
but we did cover what we can, so with that and
there being no other further questions from any of the
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RAYAtlanta Power Company
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parties, I rm going to
party or Commissioner
that needs to be added
go ahead and wrap this up, unless a
f inds that there's somethj-ng else
to the record prior to the
Commission issuing a final Order in this case. The
hearing will be complete and we will close the record,
meaning the case will be deemed fu11y submitted and upon
thatr we wlll be deliberating privately, and with that
being said, we are now adjourned. Thank you very much
for your attendance and thank you folks from Atlanta for
coming down and partaklng in this, appreciate it very
much.
(The Hearing adjourned at 2255 p.m. )
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RAYAtlanta Power Company
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AUTHENTICATION
This is to certify that the foregoing
proceedings held in the matter of the investigation of
Atlanta Power Company service and customer relati-ons,
commencing at 2200 p.m. r oD Wednesday, Eebruary 23, 2022,
at the Commission Hearing Room, 11331 W. Chinden BIvd,
Building #8, Suite 201-A, Boise, Idaho, i-s a true and
correct transcript of said proceedings and the original
thereof for the file of the Commission.
CONSTANCE
Certified
S. BUCY
Shorthand Reporter
BUCYScoNSTAIICE
OF loAtloSTAIEPUBLENOTARYrn05NUMEERCOi,lMltiSl0N $s2024irfY
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CSB REPORTING
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RAY
Atlanta Power Company
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