20180619PAC to Staff 1-8.pdf

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J. Ted Weston
Manager, Regulation
Enclosures
RECEIVED
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1407 W North Templo, Suite 330
Salt Lake City, Utah 841'16
June 19,2018
Diane Hanian
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702-5918
[e-mail]. gov (C)
RE: ID PAC-E-I8-03
IPUC Data Request (l-8)
Please find enclosed Rocky Mountain Power's Responses to IPUC Data Requests l-8. Also
provided are Attachments IPUC l, 3, 5-(1-2),and7.
If you have any questions, please feel free to call me at [phone].
Sincerely,
PAC-E-18-A3 /Rocky Mountain Power
June 19,2018
IPUC l't Set Data Request I
IPUC Data Request I
Please provide a legible map, identifying boundaries and facilities being
transferred.
Response to IPUC Data Request I
Please refer to Attachment IPUC 1.
Recordholder: Ned Bennett
Sponsor: To Be Determined
PAC-E-I8-03 I Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 2
IPUC Data Request 2
Please explain why no service drops (FERC Account No. 369) are included in the
value of inventory listed in Exhibit A.
Response to IPUC Data Request 2
The service drops shown appear under FERC Accounts 365 and 367.
Recordholder: Brent Dewsnup
Sponsor: To Be Determined
PAC-E-I8-03 / Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 3
IPUC Data Request 3
On page 2 of its Application, the Company refers to the Service Allocation
Agreement between the Company and the City that was approved by the
Commission on December 5, 2017. Paragraph 6 of this agreement states that the
purchasing utility will pay the replacement costs of the facilities, minus
depreciation, plus 167 percent of the existing consumers' revenue collected during
the most recent 12 months; however, the purchase price in Section 2.02 of the
April 25, 2018, Asset Purchase Agreement also includes expenses such as
Separation Costs and Legal/Transaction Costs.
(a) What are separation costs and how are they calculated? Please provide a
detailed enumeration of separation costs included in the asset purchase
agreement. Include applicable procedures and spreadsheets with formulas
enabled.
(b) Please provide a detailed enumeration of the legal/transaction costs included
in the asset purchase agreement. Include applicable procedures and
spreadsheets with formulas enabled.
(c) Why were these additional expenses included in the Asset Purchase
Agreement, even though they were not part of the compensation formula
given in the Service Allocation Agreement?
Response to IPUC Data Request 3
(a) Separation costs are the costs incurred to physically separate the assets from
the Rocky Mountain Power (RMP) system. They were calculated by an
estimator in the area using the Retail Construction Management System
(RCMS). Please refer to item 2 in Attachment IPUC 3 for supporting
documentation. The separation cost from RCMS is $10,805, and RMP crews
will be removing the facilities.
(b) See the detail included below:
PAC-E-I8-03 / Rocky Mountain Power
June 19,2018
IPUC lst Set Data Request 3
Dc*rlpton
Eslmator
Accounting
Finance
Regulation
General Counsel
Total
Rocky lrlountaln Powcr
Propoad Srla ln Plecc, ldeho Frllr, ldrho - Plonccr Rd.
Valuo of lnvcnbry
Tranucton Corilt
Numbcrof Rrtc pcrHoutr Hour Totr! Cort
3$76.00$228.00
5 $ 91.00 $ 455.00
5$84.00$420.00
8$S.47$77r.76
6 $ 16.00
T-477-
$ 630.00
$ 2,504.7627
$ 2,500.00
(c) These are expenses/costs directly resulting from the sale of the assets. They
would not have been incurred if the assets were not sold.
Recordholder: Nathan Bailey
Sponsor: To Be Determined
PAC-E-18-03 / Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 4
IPUC Data Request 4
Please explain the following (ref. Idaho Code $61-328 (3)):
(a) That the transaction is consistent with the public interest;
(b) That the cost and rates for supplying service will not be increased by reason of
such transaction; and
(c) That the applicant for such acquisition or transfer has the bona-fide intent and
financial ability to operate and maintain said property in the public service.
Response to IPUC Data Request 4
(a) Idaho Code $61-332 defines as its purpose: to promote harmony among and
between electric suppliers. Prohibit pirating of consumers, discourage
duplication of electric facilities, and stabilize the territories and consumer
services of electric suppliers. The agreement between the city of Idaho Falls
and the Company was intended to meet this purpose thereby meeting the
public interest.
(b) The purchase price is designed to compensate the Company for the investment
to serve those customers so not to impact other customers.
(c) The city of Idaho Falls has been an electric supplier for decades and is
expected to continue to provide electric service to its customers.
Recordholder: Ted Weston
Sponsor: To Ile Determined
PAC-E-18-03 i Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 5
IPUC Data Request 5
Please provide workpapers and spreadsheets (with calculations and links enabled)
used to determine the sales price for the assets shown in Exhibit A (Description of
Assets). Please provide the book value, replacement cost, and depreciation of
assets with these workpapers.
Response to IPUC Data Request 5
Please refer to Attachment IPUC 5-1, which is a spreadsheet showing how the
sales price was calculated. The sales price is based on replacement cost lsss
depreciation. The "Price" tab is a summary and total calculation for the asset sale,
the $77,892 found in cell G42.
Price of assets being sold
Tax gross up
Separation costs
Legal/Transaction costs
12 months revenue times 1.67
$27,590
10,736
10,805
2,500
26.262
Total price s77,892
The "Pioneer Rd" tab is a list of the assets and a calculation of the sales price of
those assets. The $27,590 sales price is found in cell N39. Please refer to lines
59-68 and 137-138 of SB 180, included as Attachment IPUC 5-2.
The "12 Months Revenue" tab is the previous l2 months of revenue for the
customers that will be impacted. The calculation is l2 months of revenue times
1.67, the total amount of $26,262 is found in cell P6.
Recordholder: Nathan Bailey
Sponsor: To Be Determined
PAC-E-I8-03 / Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 6
IPUC Data Request 6
Please describe how the disposition of the assets in Exhibit A and customers in
Exhibit B will be recorded for accounting purposes. Please include applicable
procedures and spreadsheets with formulas enabled.
Response to IPUC Data Request 6
The assets in Exhibit A will be retired at their net book value from Rocky
Mountain Power's asset records. (see IPUC 5 response for calculation of Exhibit
A) The customers in Exhibit B will be notified of their new provider and their
customer accounts will be closed with a final billing as per final meter read for
their electric usage. The proceeds received from the calculation of 167% of the
customers last l2 months billings will be recorded as salvage by crediting FERC
Account 108 - Provision for Accumulated Depreciation.
Recordholder: Dean Wirick
Sponsor: To Be Determined
PAC-E-18-03 / Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 7
IPUC Data Request 7
Please describe how the proceeds from this sale of assets will be recorded for
accounting purposes. Please include applicable procedures and spreadsheets with
formulas enabled.
Response to IPUC Data Request 7
Please refer to the "Journal Entries" tab in Attachment IPUC 7 for how the
proceeds from this sale will be recorded and the formulas supporting the
recording ofproceeds from this sale.
Recordholder: Vince Harmsen
Sponsor: To Be Determined
PAC-E-I8-03 / Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 8
IPUC Data Request 8
Please explain how customers are being notified of the proposed change.
Response to IPUC Data Request 8
The initial request for transfer of service must come from the customer. Pursuant
to the Service Allocation Agreement approved by the ldaho Public Utilities
Commission in Case PAC-E-17-12, Idaho Falls can't initiate the purchase process
without the customer requesting that their service be transferred to Idaho Falls.
Recordholder: Brent Dewsnup
Sponsor: To Be Determined