20180619PAC to Staff 1-7.pdf

v,RocKY MOUNTAIN-<POWER
\ a uvsro.r o+ec'rrcone
REC E IVED
i*l8 JUii l9 PH 12: t+5
- .-'t tfrll I I ;LlU: ' ir'.l.li '.;ij;'tt{iSSlCN
1407 W North Temple, Suite 330
Salt Lake City, Utah 84116
June 19,2018
Diane Hanian
Idaho Public Utilities Commission
472W. Washington
Boise, ID 83702-5918
diane.holt@puc. idaho. gov (C)
RE: ID PAC-E-I8-04
IPUC Data Request (l-7)
Please find enclosed Rocky Mountain Power's Responses to IPUC Data Requests l-7. Also
provided are Attachments IPUC 1,3-(l-2), and 5.
If you have any questions, please feel free to call me at [phone].
Sincerely,
o-' , T*-d- uJu*.tta
J. Ted Weston
Manager, Regulation
Enclosures
PAC-E-I8-04 / Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 1
IPUC Data Request I
Please provide a legible map, identiSing boundaries and facilities being
transferred.
Response to IPUC Data Request I
Please refer to Attachment IPUC l.
Recordholder: Ned Bennett
Sponsor: To Be Determined
PAC-E-I8-A4 /Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 2
IPUC Data Request 2
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 2
(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 Be Determined
PAC-E-18-04 / Rocky Mountain Power
June 19,2018
IPUC I't Set Data Request 3
IPUC Data Request 3
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 3
Please refer to Attachment IPUC 3- 1, which is a spreadsheet showing how the
sales price was calculated. The sales price is based on replacement cost less
depreciation. The "Price" tab is a summary and total calculation for the asset sale,
the $92,713 found in cell G38.
Price of assets being sold
Tax gross up
Separation costs
l2 months revenue times 1.67
st7,996
9,048
2,474
63.196
Total price fi92,713
The "Prestwich Estates" tab is a list of the assets and a calculation of the sales
price of those assets. The $ 17,996 sales price is found in cell O 19. Please refer to
lines 59-68 and 137-138 of SB 180, included at Attachment IPUC 3-2.
The "12 Months Revenue" tab is the previous 12 months of revenue for the
customers that will be impacted. The calculation is 12 months of revenue times
1.67, the total amount of $63,196 is found in cell P29.
Recordholder: Nathan Bailey
Sponsor: To Be Determined
PAC-E-18-04 /Rocky Mountain Power
June 19,2018
IPUC lst Set Data Request 4
IPUC Data Request 4
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 Requost 4
The assets in Exhibit A will be retired at their net book value from Rocky
Mountain Power's asset records. (see IPUC 3 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 l67Yo 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-I8-04 /Rocky Mountain Power
June 19,2018
IPUC lst Set Data Request 5
IPUC Data Request 5
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 5
Please refer to the "Journal Entries" tab in Attachment IPUC 5 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-18-04 / Rocky Mountain Power
June 19,2018
IPUC Ist Set Data Request 6
IPUC Data Request 6
The purchase price given in Section 2.AZ of the Purchase Agreement is $92,713;
however, the sum of the property valuation (Exhibit A) and 1670/o of the revenue
obtained from the prior l2 months bills (Exhibit B) is only $81 ,192.12. Please
explain this discrepancy, and provide a detailed enumeration of the costs used to
calculate the $92,713 purchase price.
Response to IPUC Data Request 6
Please refer to the Company's response to IPUC Data Request 3.
Recordholder: Nathan Bailey
Sponsor: To Be Deterrnined
PAC-E-I8-04 / Rocky Mountain Power
June 15,2018
IPUC lst Set Data Request 7
IPUC Data Request 7
Please explain how customers are being notified of the proposed change.
Response to IPUC Data Request 7
All of the affected prope(y has been purchased by a commercial developer and
the developer has made the request to be served by Idaho Falls. As such,
notification has already taken place.
Recordholder: Brent Dewsnup
Sponsor: To Be Determined