20160315Transcript Volume I.pdf

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ORIGINAL
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER
COMPANY'S APPLICATION TO
)
) CASE NO.
APPROVE THE TRANSFER AND SALE OF
CERTAIN ASSETS TO THE UNITED
STATES DEPARTMENT OF JUSTICE,
FEDERAL BUREAU OF INVESTIGATION,
) IPC-E-15-26
)
) ORDER NO.
r 33465
) ___________________ )
BEFORE
COMMISSIONER PAUL KJELLANDER (PRESIDING)
COMMISSIONER ERIC ANDERSON
MONDAY, FEBRUARY 22, 2016
BOISE, IDAHO
VOLUME I OF I
Pages 1 -11
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Reported by: Lori A. Pulsifer, RDR, CRR, CSR No. 354
HEDRICK
COURT REPORTING
POST OFFICE BOX 578
BOISE, IDAHO 83701
208-336-9208
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BE IT REMEMBERED that the hearing before the Idaho
Public Utilities Commission was taken at the office of
the Idaho Public Utilities Commission, located at 472
West Washington, Boise, Idaho, before Lori A. Pulsifer,
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a Court Reporter (Idaho Certified Shorthand Reporter No.
354) and Notary Public in and for the County of Ada,
State of Idaho, on Monday, February 22, 2016, commencing
at the hour of 1:45 p.m., in the above-entitled matter.
A P P E A R A N C E S
FOR IDAHO POWER:
Ms. Lisa D. Nordstrom
Lead Counsel
IDAHO POWER, an IDACORP Company
1221 West Idaho Street
Boise, Idaho 83702
Phone: [phone]
Email: [e-mail]
FOR ICIP:
Mr. Peter Richardson
Attorney at Law
RICHARDSON ADAMS, PLLC
515 North 27th Street
Boise, Idaho 83702
Phone: [phone]
Email: [e-mail]
FOR !PUC:
Ms. Daphne L. Huang
Deputy Attorney General
OFFICE OF THE ATTORNEY GENERAL
Post Office Box 83720
Boise, Idaho 83720-0074
Phone: [phone]
Email: [e-mail]
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Witness's Name Page Number
(No witnesses were called.)
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I N D E X O F E X H I B I T S
Exhibit No. Description Page Marked
(No exhibits were marked.)
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BOISE, IDAHO
MONDAY, FEBRUARY 22, 2016
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COMMISSIONER KJELLANDER : Good afternoon . This
is the time and place for a Public Technical Hearing in
Case No . IPC-E-15-26 , In the Matter of Idaho Power
Company 's Application to Approve the Transfer and Sale
of Certain Assets to the United States Department of
Justice , Federal Bureau of Investigation.
My name is Paul Kjellander . I will chair
today 's proceeding .
To my right is Commissioner Eric Anderson .
Just as a point of interest , Idaho Code
61-328(2) instructs the Commission . Specifically , the
language in the statute says it "shall conduct a public
hearing upon the application" by an electric utility for
the sale of property , as in this case . Upon completion
of such hearing , this matter shall be considered fully
submitted.
So towards fulfilling our statutory
requirements , we will kick this off by beginning with
the appearances of the parties.
Why don 't we start with Idaho Power?
MS . NORDSTROM: Thank you , Commissioner . My
name is Lisa Nordstrom . I am an attorney for Idaho
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Power Company .
To my left is Shelli Stewart , my co-counsel .
To my right is Regulatory Analyst Zachary Harris and
Manager of Rate Design Tami White .
COMMISSIONER KJELLANDER: Mr. Richardson?
MR. RICHARDSON : Thank you , Commissioner.
Peter Richardson of the firm Richardson Adams
on behalf of the Industrial Customers of Idaho Power .
COMMISSIONER KJELLANDER : Thank you .
Ms. Huang?
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MS . HUANG : Thank you, Commissioner Kjellander .
I am here representing Staff . On behalf of Staff , we
have Rick Keller .
COMMISSIONER KJELLANDER : Welcome to all of
you .
Why don 't we just kick it off to see if we have
any matters that need to come before the Commission .
This is an opportunity , if you would like , to offer any
statements. We are certainly here to get them on the
record .
We will see if there are any questions for the
Commission . Is there anybody who would like to lead
off? This is karaoke .
MS . NORDSTROM: I would be happy to start .
COMMISSIONER KJELLANDER : Good .
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MS . NORDSTROM : Idaho Code 61 -328 sets forth
three criteria that should be met in order for the
Commission to authorize this transaction:
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1. That the transaction is consistent with the
public interest ;
2 . That the cost of and rates for supplying
electric service will not be increased as a result of
the transaction ; and
3. That the applicant for such acquisition has
the bona fide intent and financial ability to operate
and maintain the property in the public service.
This transaction is consistent with the public
interest . The FBI's purpose is to protect and defend
the United States and to offer criminal justice services
to the public .
The transfer of assets will facilitate the
strict security requirements at the site which has
proven to be difficult to access by Idaho Power to
maintain and repair the assets at issue in this case .
The assets that are located on the FBI 's side
of the point of delivery serve only the FBI and , thus ,
will not impact the reliability and delivery of electric
service to other customers .
The second criteria that must be met in this
case is that the transfer of these assets will not
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increase costs to other Idaho Power customers.
The sales price methodology that the parties
have agreed to in this case ensures that these costs
will not increase and that rates to other customers will
not be impacted .
It includes net book value , the true -up of past
levelized rate of return , the near -term operational and
rate -of-return impacts resulting from the sale of the
assets and a net gross taxes .
The third criteria that needs to be considered
is whether the FBI has the bona fide intent and
financial ability to operate and maintain the assets in
the public service .
Headquartered in Washington , DC , the FBI is a
federal intelligence and law enforcement agency that
employs near 35 ,000 people worldwide and has , for the
financial year of 2014 , a total direct -funded budget of
approximately $8.3 billion . As you know , the FBI is
financially backed by the United States Government and
its taxpayers .
It is Idaho Power's position that the criteria
of the statute has been met and that this sale is in the
public interest .
We ask that the Commission approve the
transaction .
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COMMISSIONER KJELLANDER: Thank you .
Are there any questions from the Commission?
COMMISSIONER ANDERSON : No .
COMMISSIONER KJELLANDER: Thank you .
Mr . Richardson?
MR. RICHARDSON : Thank you , Mr . Chairman.
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The Industrial Customers have nothing to add to
the docket in terms of substantive issues .
We would reiterate our request and echo the
Staff 's comments that this case not be used to set
precedent for future purchases by customers of Idaho
utility-owned assets on the customer side of the point
of delivery.
We continue to experience some frustration with
our ability to negotiate purchase prices with the
utility . We underscore our request that the Commission
look at this issue in a generic fashion .
The other two investor utilities you regulate
charge very different rates for the sale of
utility-owned assets on the customer side of the point
of delivery.
An inconsistency is not in the public 's
interest, and we would like the Commission to look at
this in a generic fashion .
Not to upset the apple cart in this docket , we
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would not oppose your approval of the application .
COMMISSIONER KJELLANDER : Thank you ,
Mr . Richardson .
Are there any other questions for members of
the Commission?
MR . PETERSON: No .
COMMISSIONER KJELLANDER : Ms . Huang?
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MS . HUANG : Thank you , Commissioner . Staff has
no further comment .
COMMISSIONER KJELLANDER : Thank you .
Is there anything further that needs to come
before the Commission today?
MS . NORDSTROM : Just to respond to the
Industrial Customers ' comments.
COMMISSIONER KJELLANDER: Are you sure you want
to do that? I 'm just asking.
MS . NORDSTROM : I was merely going to state
that the Company has addressed these comments in our
reply comments , and we stand by those .
COMMISSIONER KJELLANDER : Thank you .
Is there anything further that needs to come
before the Commission today?
If not , then , thank you all for your
participation and your presence here today .
We have fulfilled our requirement under Idaho
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Code 61 -328(2).
As we reach the completion of this case , this
item is fully submitted ; the Commission and will
de l iberate on it according l y .
Again , thank you .
We are adjourned .
(Procee dings conc luded a t 1:52 p .m.)
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STATE OF IDAHO
County of Ada
C E R T I F I C A T E
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I, LORI A. PULSIFER, a Notary Public in and
for the State of Idaho, do hereby certify:
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That said hearing was taken down by me in
shorthand at the time and place therein named and
thereafter reduced to computer type, and that the
foregoing transcript contains a true and correct record
of the said hearing, all done to the best of my skill
and ability.
I further certify that I have no interest in
the event of the action.
2016.
WITNESS my hand and seal this 8th day of March
Lori A. Pulsifer
Notary Public in and
for the State of Idaho
My commission expires: November 7, 2020