20191009PAC to Staff 1-3.pdf

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1407 W North Temple, Suite 330
Salt Lake City, Utah 841 16
October 9,2019
Diane Hanian
Idaho Public Utilities Commission
472W. Washington
Boise, ID 83702-5918
[e-mail]. gov (C)
RE: ID PAC-E-19-11
IPUC l$ Set Data Request (l-3)
Please find enclosed Rocky Mountain Power's Responses to IPUC 1't Set Data Requests 1.1-1.3.
Also provided is Attachment IPUC 1.2.
If you have any questions, please feel free to call me at [phone].
Sincerely,
-Jsl-J. Ted Weston
Manager, Regulation
Enclosures
PAC-E-19-11 / Rocky Mountain Power
October 9,2019
IPUC I't Set Data Request I
IPUC Data Request I
Please provide the proposed journal entries associated with the sale of assets in a
spreadsheet with formulas intact.
Response to IPUC Data Request I
The sale of the asset did not result in a gain or loss, as the transaction is based on
the asset's net book value, as shown in the following proposed journal entry.
Please refer to response IPUC 1.2 for further information on how the asset's net
book value was calculated.
Recordholder: Vince Harmsen
Sponsor: Ted Weston
FERC Account GL
Account
Debit Credit
Account 131, Cash 101000 $ 2,330.65
Account 1 08, Accumulated Depreciation 144904 1,059.10
Account 101, Electric Plant in Service
(Transmission)140t40 $ 3,389.75
PAC-E-19-11 / Rocky Mountain Power
October 9,2019
IPUC I't Set Data Request 2
IPUC Data Request 2
Please provide an explanation and the calculation of the sales price. Please
include in the explanation the source documents substantiating the book value.
Response to IPUC Data Request 2
The sale is based on the net book value, representing the gross asset, less
accumulated depreciation. In reviewing the asset sale information, the application
inadvertently reported the asset's acquisition value of $3,389.75, as the net book
value. Please refer to Attachment IPUC 1.2, on the "American Falls-Wheelon"
tab, which provides the calculation of the net book value or sales price of
$2,330.65, as found in cell T135, along with a list of assets.
Recordholder: Vince Harmsen
Sponsor: Ted Weston
PAC-E-19-11 / Rocky Mountain Power
October 9,2019
IPUC 1't Set Data Request 3
IPUC Data Request 3
Please provide an explanation and any supporting evidence for the following (ref.
Idaho Code 6l-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 3
(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 Idaho Power and the
Company was intended to meet this purpose, consistent with the public
interest.
(b) The purchase price compensates PacifiCorp for the net book value of the
original investment so neither PacifiCorp or Idaho Power's customers are
harmed.
(c) Idaho Power has been an electric utility under the purview of the commission
for decades and is expected to continue to provide electric service to its
customers.
Recordholder: Daniel Solander
Sponsor: Ted Weston