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Home My WebLink About20190322PAC to Staff 1-11.pdfY ROCKY MOUNTAIN BP,H,F^"B""., rr-i!r-ai-,rrt-f\l.ll-i i-!:rf-f II \L-!Ji--t',i LLI i,.t llill tZ Pi{ 2: I 7 1407 W North Temple, Suite 330 Salt Lake City, Utah 84116 {March 22,2019 Diane Hanian Edward Jewell Idaho Public Utilities Commission 472W. Washington Boise,ID 83702-5918 diane.holt(rrpuc.idaho. eov (C) edward. i ewell@puc. idaho. qov (C) RE: ID PAC-E-19-02 IPUC 1't Set Data Request (1-1 1) Please find enclosed Rocky Mountain Power's Responses to IPUC I't Set Data Requests 1-11. Also provided are Attachments IPUC I and4 and Redacted Attachment IPUC 5. Provided on the enclosed Confidential CD is Confidential Attachment 5. Confidential information is protected under the Non-Disclosure Agreement in this proceeding. Sincerely, --Jsl-J. Ted Weston Manager, Regulation Enclosures PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC I't Set Data Request I IPUC Data Request I Please provide the workpapers, with all formulas intact, used to determine the sale price for the assets shown in Exhibit A (Description of Assets). Please provide the book value and depreciation of assets with these workpapers. Response to IPUC Data Request I ln reviewing the asset sale an error was found. The sales price for 1 CT transformer was inadvertently omitted, and not included in the sales price. Including the 1 CT transformer in the sales price would increase the sales price from $59,469 to $59,513; a difference of $44. The data request response will use the adjusted price, so that all numbers agree. Please refer to Attachment IPUC l, 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 $59,513 found in cell G42. Price of assets being sold Tax gross up Separation costs 12 months revenue times 1.67 Legal transaction costs s8,913 2,117 3,700 43,283 1,500 Total price $59,513 The "Sandy Downs" tab is a list of the assets and a calculation of the sales price of those assets. The $8,913 sales price is found in cell Nl8. The depreciation of $2,737 is found in cell Hl8. The net book value of $2,548 is found in cell I18. 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 l.67,the total amount of $43,283 is found in cell P6. Recordholder: Nathan Bailey Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l't Set Data Request 2 IPUC Data Request 2 Referencing Exhibit A, Description of Assets, please explain why the $33 in FERC account 370 was left off of the Value of Inventory Plant ln Service Sales Price. Response to IPUC Data Request 2 Please refer to the Company's response to IPUC Data Request 1. ln reviewing the asset sale an error was found. The sales price for I CT transforrner was inadvertently omitted, and not included in the sales price. lncluding the I CT transformer in the sales price would increase the sales price from $59,469 to $59,513; a difference of $44. The $44 change can be attributed to $33 for the 1 CT transformer plus $l I of tax gross up. Recordholder: Nathan Bailey Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l't Set Data Request 3 IPUC Data Request 3 Please describe how the disposition of the assets in Exhibit A and customer accounts in Exhibit B will be recorded for accounting purposes. Please include applicable procedures and spreadsheets with formulas enabled. Response to IPUC Data Request 3 The assets in Exhibit A will be retired at their net book value from Rocky Mountain Power's asset records. (see IPUC I response for calculation of Exhibit A) The customers in Exhibit B will be notified of their new provider and their customer accounts will be closed with a final billing as per final meter read for their electric usage. The proceeds received from the calculation of L67% of the customers last 12 months billings will be recorded as salvage by crediting FERC Account 108 - Provision for Accumulated Depreciation. Recordholder: Dean Wirick Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l't Set Data Request 4 IPUC Data Request 4 Please describe how the proceeds from this sale of assets will be recorded for accounting purposes. Please include applicable procedures and spreadsheets with formulas enabled. Response to IPUC Data Request 4 Please refer to the "Joumal Entries" tab in Attachment IPUC 4 for how the proceeds from this sale will be recorded and the formulas supporting the recording ofproceeds from this sale. Recordholder: Vince Harmsen Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l$ Set Data Request 5 IPUC Data Request 5 Please provide copies of the previous l2 monthly bills for all meters listed in Exhibit B. Response to IPUC Data Request 5 Please see Confidential Attachment IPUC 5. Please note that the previous 12 monthly billing statements for Exhibit B are from February 2017 through January 2018. When the exhibit was prepared the wrong dates were included on the exhibit. Recordholder: TonyWorthington Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l't Set Data Request 6 IPUC Data Request 6 Please provide a detailed enumeration of separation costs included in the asset purchase agreement. lnclude applicable procedures and spreadsheets with formulas enabled. Response to IPUC Data Request 6 Separation costs are provided by a local estimator, a total of $3,700. 15;19r11 Prid.y, February 02, 2Ol8 RSWD Jump to.: _ Account Translalion Review ClCtClAtlD. | _cet 11{81 HO 064?1345 Tlrle rDFlr IDAHO FALLS BITYOIIT SANDy DOI{NS a2/02/$1{:1?:52 P1t8t4 SCR: PAGEversion AccounE108 2 r08 36 1Houra tabor 20.3,1 100.00 t $3, ?oo uaEerial $6,188- tasr calculated 02l 02120L8vehiclc contracE othert 5, Poro*cn L,>/= ToEaI Perc€nt. Totsal ARountToLaI Hou!s I 0.00 t 0.00 t 0.00 t $6, 188- 900 $00Total ilob 12,{87- lIlIEs 1 TO 6 0.00 t $00oF 60 F03-EI(IT FO7=PREV F08.NEXT EI].-RSDF F12-CA!{CEL F13*CALC F14=ERDISP FlS.CUSTCOS? Recordholder: Nathan Bailey Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l't Set Data Request 7 IPUC Data Request 7 Please provide a detailed enumeration of legaVtransactions costs included in the asset purchase agreement. Include applicable procedures and spreadsheets with formulas enabled. Response to IPUC Data Request 7 LegaVTransaction costs are an estimate to account for the time that legal, accounting, finance and regulation incur to prepare and complete the asset sale. The following guidelines have been used. Asset sales where the assets being sold are less than $10,000o LegaUTransaction cost are $1,500 Asset sales where the assets being sold are greater than $10,000o LegaVTransaction costs are $2,500 Recordholder: Nathan Bailey Sponsor: Ted Weston a a PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC 1't Set Data Request 8 IPUC Data Request 8 Are additional transfers planned in the general vicinity of this transaction and Sandy Downs? If so, please provide an explanation of potential transfers, location, and when they may occur. Response to IPUC Data Request 8 No additional transfers are anticipated in the general vicinity of this transaction. Recordholder: Jeffrey Barrett Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l't Set Data Request 9 IPUC Data Request 9 Please provide an explanation and evidence for 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 ofsuch transaction; andc. 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 9 (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, consistent with the public interest. (b) The purchase price is designed to compensate the Company for the investnent to serve those customers so as 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: Daniel Solander Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC I't Set Data Request 10 IPUC Data Request 10 Please explain how customers are being notified of the proposed change. Response to IPUC Data Request 10 The facilities served by the assets to be transferred are all city-owned recreational facilities, and customers will therefore not be directly affected by the change. The effect of the change will be that the city will begin to serve its own facilities at the site. Recordholder: Jeffrey Barrett Sponsor: Ted Weston PAC-E-19-02 / Rocky Mountain Power March 22,2019 IPUC l't Set Data Request 11 IPUC Data Request 11 Please provide additional information in relation to the transfer of Sandy Down's electric service: a. Who requested the transfer? b. Why is it necessary? Response to IPUC Data Request 11 The city of Idaho Falls requested the transfer, which is necessary given the city's general interest in providing electric service to the facilities it owns and operates. This specific recreational facility is just a few hundred feet from the city boundary. Recordholder: Jeffrey Barrett Sponsor: Ted Weston