20250521Final_Order_No_36608.pdf

Office of the Secretary
Service Date
May 21,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. PAC-E-25-03
FOR APPROVAL OF THE ASSET )
TRANSFER AGREEMENT BETWEEN )
ROCKY MOUNTAIN POWER AND THE ) ORDER NO. 36608
CITY OF IDAHO FALLS—BROADWAY )
STREET )
On February 11, 2025, Rocky Mountain Power ("Company"), a division of PacifiCorp,
and the City of Idaho Falls ("City") jointly applied to the Idaho Public Utilities Commission
("Commission")requesting approval of an Asset Transfer Agreement("Agreement")between the
Company and the City(collectively,the"Parties")for the City to purchase certain electric facilities
currently owned and used by the Company to supply electric service to a customer.
On April 1, 2025, the Commission issued a Notice of Application, Notice of Modified
Procedure, and Notice of Telephonic Hearing. Order No. 36527. The Commission held a
telephonic hearing on April 25, 2025. No members of the public testified. Commission Staff
("Staff') filed comments supporting the Application ("Staff Comments"). No other comments
were received.
Based on our review of the record,the Commission now issues this Final Order approving
the Company's Application.
BACKGROUND
In 2017, the Parties formed a Service Allocation Agreement ("SAA") to decrease service
duplication and increase stability in their service areas. Case No. PAC-E-17-12. The SAA permits
the transfer of a customer's service between the Parties if the utility acquiring the customer pays
the other just compensation for lost revenues and distribution facilities used to service the
customer.Id.
THE APPLICATION
The Agreement proposed by the Company in the Application would result in the transfer
of one customer's service from the Company to the City. Application at 3. The $13,901 proposed
sale price reflected the value of the equipment servicing the customer, revenue reimbursement,
and other associated transaction costs. Id. The Company stated that it believed that the proposed
ORDER NO. 36608 1

transfer complied with the intent of Idaho Code § 61-328 because it would reduce service
duplication without increasing rates for other customers.Id. Thus, according to the Company, the
transaction would fulfill the customer's request to transfer their electrical service to the City, an
entity with a bona fide intent and financial ability to provide service to the customer.Id.
STAFF COMMENTS
Staff evaluated the proposed Agreement and believed that it supported the intent of the
Electric Supplier Stabilization Act("ESSA")and is consistent with prior Commission orders. Staff
Comments at 2. Staff also believed that the proposed Agreement complied with Idaho Code § 61-
328 in that it would facilitate a harmonious transfer between electric suppliers. Id. Accordingly,
Staff recommended the Commission approve the proposed Agreement and authorize the transfer
of electrical service for the residential customer.Id. at 3.
Staff verified that the $13,901 proposed sale price included the replacement book value of
the existing assets necessary to serve the customer, the lost customer revenue, separation costs,
legal expenses, and transaction costs, pursuant to the Agreement. Id. at 2. Staff noted that the
method the Parties used to calculate the proposed sale price complied with the SAA. Id.
COMMISSION FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-328 and 61-332
et seq. The Commission has reviewed the record, including the Application and comments.
Specifically, as required by Idaho Code § 61-328(3), the Commission finds that the property
transfer is consistent with the public interest, will not increase the cost of rates for supplying
service, and the private party acquiring the property being transferred has the bona fide intent and
financial ability to operate and maintain it. Additionally, the proposed transfer follows the ESSA
and prior Commission orders. Because this transfer complies with the SAA and the requirements
of Idaho Code § 61-328(3), we find it reasonable to approve the Parties' Application.
ORDER
IT IS HEREBY ORDERED that the Application is approved. The transfer of the electric
service and related electric facilities serving the Company's customer identified in the Application
to the City is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one(21) days of the service date of this Order regarding any matter
ORDER NO. 36608 2

decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 2 1" day of
May 2025.
G
EDWARD LODG , PR IDENT
kL
J R. HAMMOND JR., COMMISSIONER
DAYN HA IE, COMMISSIONER
ATTEST:
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Commission Secreta
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