20260811Final_Order_No_37124.pdf

Office of the Secretary
Service Date
August 11,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ROCKY MOUNTAIN ) CASE NO. PAC-E-26-09
POWERS'S APPLICATION FOR APPROVAL )
OF THE ASSET TRANSFER AGREEMENT )
BETWEEN ROCKY MOUNTAIN POWER ) ORDER NO. 37124
AND THE CITY OF IDAHO FALLS 5TH WAY )
On May 13, 2026, Rocky Mountain Power, a division of PacifiCorp ("Company") 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 one customer
("Application").
On June 16, 2026, the Commission issued a Notice of Application, Notice of Modified
Procedure, and Notice of Telephonic Customer Hearing. Order No. 37070. The Order set public
comment and Company reply deadlines, and set a public telephonic customer hearing. Id. No
public comments were received and no testimony was offered.
Based on our review of the record,the Commission now issues this Final Order approving
the Application.
BACKGROUND
The Service Allocation Agreement ("SAA"), as approved by the Commission on
December 5, 2017, and updated on March 2,2026, authorized the transfer of a customer's electric
service from one utility to another, provided that the acquiring utility compensates the serving
utility for both lost revenues and the distribution facilities used to provide service to that customer.
Application at 2-3. Under the terms of the Agreement, the Parties agreed that compensation for
lost revenues would be calculated as 167% of the customer's total electric billings during the
preceding twelve-month service period. Id. at 3. The Agreement further required the acquiring
utility to purchase any poles, wires, crossarms, insulators, guy wires, and other facilities that are
no longer necessary for the serving utility to provide electric service to that customer.Id.
THE APPLICATION
A customer requested that electric service be transferred to the City, and the Company
notified the customer that it had entered into the Agreement to facilitate the transfer. Id. Per the
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terms of the Agreement, the Parties agreed to transfer the customer's electric service to the City,
and the City agreed to purchase the facilities identified in Exhibit A to the Agreement,which was
submitted as Confidential Attachment No. 1 to the Application.Id.
STAFF COMMENTS
Staff reviewed the proposed transaction and believed that it supported the intent of the
Electric Supplier Stabilization Act ("ESSA"), complied with the requirements of Idaho Code §§
61-328(3) and 61-332(2), and was consistent with prior Commission orders. Staff Comments at 2.
Staff believed the Company demonstrated that the transfer promotes the public interest, provides
fair compensation for the transferred assets without increasing rates for existing customers, and
ensures the affected customer will continue to receive reliable electric service from the City,which
has the intent and financial ability to maintain service.Id. The Agreement provided for the transfer
of electric service for a customer on 5th Way, with the City purchasing the necessary electric
facilities and compensating the Company for the transferred assets, separation costs, lost customer
revenue, and legal and transaction expenses. Id. Staff verified that the total transaction price of
$28,207 was calculated using a methodology consistent with the 2017 SAA,including replacement
book value less straight-line depreciation, separation costs,and lost customer revenue based on the
customer's electric bills from June 2024 through May 2025. Id. Staff also confirmed that the
Company's accounting treatment of the sale proceeds would prevent impacts on other customers.
Id. at 3. Based on its review, Staff recommended that the Commission approve the Agreement and
authorize the transfer of electric service for the customer on 5th Way in Idaho Falls from the
Company to the City. Id. at 4.
COMMISSION FINDINGS AND DECISION
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 Staff Comments.
Based on that review,the Commission finds that the proposed transfer complies with the SAA,the
ESSA, Idaho Code §§ 61-328(3) and 61-332(2), and prior Commission orders. The Commission
further finds that the transfer promotes the public interest, provides fair compensation for the
transferred assets without increasing rates for existing customers, and ensures that the affected
customer will continue to receive reliable electric service from the City, which has the intent and
financial ability to operate and maintain the transferred facilities. The Commission also finds that
the Company's proposed accounting treatment of the sale proceeds will prevent any adverse
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impacts on other customers. Accordingly, because the proposed transfer complies with the SAA
and the applicable requirements of Idaho Code §§ 61-328(3)and 61-332(2),the Commission finds
it reasonable to approve the Parties' Application.
ORDER
IT IS HEREBY ORDERED that the Application is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within 21 days of the service date of this Order regarding any matter decided in
this Order.Within 7 days after any person has petitioned for reconsideration, any other person may
cross-petition for reconsideration.Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I Ph day of
August 2026.
G
EDWARD LODGE, PR IDENT
J R. HAMMOND JR., COMMISSIONER
1
DAYN HA DIE, COMMISSIONER
ATTEST:
oni a anchez
Commission Secretary
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