20041206_1019.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:MICHAEL FUSS
DATE:DECEMBER 3, 2004
RE:IDAHO POWER TARIFF ADVICE NO. 04-06TO INCREASE THE CITY
OF EAGLE'S FRANCHISE FEE.
On December 1 , 2004, Idaho Power Company filed a Tariff Advice with the Commission
requesting an increase in the franchise fee within the City of Eagle (City). The increase in franchise
fee from 1 % to 3% is in accordance with the Settlement Stipulation (Stipulation) approved in Order
No. 29634. The settlement resolved the disputed alignment of the 138 kV transmission line through
the City of Eagle. As part of the Stipulation the City agreed to increase the franchise fee to pay for
changes in the 138 kV line as requested by the City of Eagle. The Stipulation further states that "(tJhe
City agrees to take any and all action necessary to reduce its franchise fee from 3% to no more than 1 %
and Idaho Power shall have no obligation after December 31 , 2010 to collect and pay franchise fees to
the City above 1 % unless otherwise agreed to by Idaho Power or consistent with Idaho Law as of the
date of this Stipulation." Settlement Stipulation, Case No. IPC-04-04 at 6. Staff has attached the
text of the Stipulation along with the Company s Tariff Advice No. 04-06 for interested parties.
COMMISSION DECISION
The Staff recommends that Schedule 95 , Sheet 95-, be "accepted for filing" with an effective
date of January 1, 2005 as proposed by the Company. Does the Commission agree?
udmemos/Eagle 04-
DECISION MEMORANDUM DECEMBER 3 2004
POWER
An IDACORP Company
MAGGIE BRILZ
Director, Pricing
[phone]F~ (208) 388~9
mbrilz(Ci).idahopower.com
December 1 , 2004
Ms. Jean D. Jewell , Secretary
Idaho Public Utilities Commission
P. O. Box 83720
Boise, I D 83720-0074
RE: Tariff Advice No. 04-
. Revision to Schedule 95
Dear Ms. Jewell:
Idaho Power Company herewith transmits for filing First Revised Sheet No.
95-1. This tariff revision increases the franchise fee for the City of Eagle from 1 % to 30/0
effective January 1 , 2005. An increase in the franchise fee to 30/0 is a provision of the
Settlement Stipulation between Idaho Power Company and the City of Eagle approved by
the Commission in Order No. 29634 issued on November 19; 2004. Also transmitted is a
copy of Schedule 95 in legislative format.
If you have any questions regarding this filing, please call me.
Sincerely,
m~6
Maggie Brilz
MB:mb
Enclosures
Ric Gale
Lisa Hardin
P&RS Files
Legal Files
Idaho Power Company
I.P.C. No. 27 Tariff No. 101
First Revised Sheet No. 95-
Cancels
Original Sheet No. 95-
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
PURPOSE
The purpose of this schedule is to set forth the charges such as license, privilege, franchise
business, occupation, operating, excise, sales or use of street taxes or other charges imposed on the
Company by municipal corporations and billed separately by the Company to its Customers within the
corporate limits of a municipality.
APPLICABILITY
This schedule is applicable to all bills for Electric Service calculated under the Company
schedules and special Contracts in the Company s service area within the State of Idaho as provided in
. Rule C of this Tariff.
CHARGE
The rates and charges for Electric Service provided under the Company s schedules will be
proportionately increased by the following charge within the municipality on and after the effective date
of the charge for the applicable municipal ordinance, which charge will be separately stated on the
Customer s regular billing.
Effective Date
Munici alit Ordinance No.Of Char Char
City of Bliss 03-November 28, 2003
City of Boise 5650 October 26, 1995
City of Buhl 835 November 20, 1997
City of Caldwell 2133 June 26, 1996
City of Carey 96-March 25, 1997
City of Cascade 537 November 16, 1995
City of Chubbuck 498 January 21 , 1999
City of Council 362 September 1 ,2000
City of Eagle 349 January 1 , 2005
City of Emmett 858 June 26, 1996
City of Fairfield 199 May 29 2003
City of Fruitland 393 March 21 2001 1 %
City of Garden City 669 June 26, 1996
City ofGlenns Ferry 452 March 24, 1999
City of Grand View 99-January 21 , 2000
City of Greenleaf 136 October 22, 1999
IDAHO
Issued - December 1 , 2004
Effective - January 1 , 2005
Advice No. 04-
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
BARTON L. KLINE ISB #1526
MONICA B. MOEN ISB #5734
Idaho Power Company
O. Box 70
Boise, Idaho 83707
Phone: [phone]
FAX: [phone]
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UTiLi i iES CGi";r";!SSION
Attorneys for Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IDAHO POWER COMPANY CASE NO. IPC-04-
Complainant
SETTLEMENT STIPULATION
CITY OF EAGLE, IDAHO
Respondent.
EAGLE RIVER, LLC
Intervenor.
This Settlement Stipulation is entered into among Idaho Power Company
Idaho Power" or the "Company ), the City of Eagle , Idaho (the "City ), Eagle River, LLC
Eagle River ) and the Idaho Public Utilities Commission Staff ("Staff") who are
collectively referred to herein as the "Parties" and individually as a "Party." The Parties
SETTLEMENT STIPULATION
Page
desire to resolve the disputed issues in this case by entering into this Settlement
Stipulation.
Terms of the Stipulation
The Parties stipulate and agree as follows:
The Parties agree to the alignment of the 138-kV transmission line
as generally illustrated on Exhibit No.1 hereto.
One wooden or corten steel pole with the minimum height
necessary to meet clearance requirements but not exceeding 84 feet above grade
along with required equipment and down guy supports , will be erected within the
southern portion of the existing Eagle Substation to accommodate extension of the 138-
kV conductors from the existing dead-end structures near the northerly boundary of the
Eagle Substation to the new pole. Extension of the conductors will require placement
of the conductors above existing equipment to maintain required clearances. The
parties agree that this modification will not require amendment of the Conditional Use
Permit approved by the City on January 9, 1996.
Certain existing poles in the alleyway or easement area located
immediately west of the Eagle Substation and extending westerly to the east side of
Eagle Road will be removed and replaced with wooden or corten steel poles in a T A
configuration.Each said pole will have the minimum height necessary to meet
clearance requirements but will not exceed 84 feet above grade to accommodate the
138-kV transmission line to be extended from the Eagle Substation along the alignment
illustrated on Exhibit 1. The existing EAGL 013 and EAGL 014 overhead distribution
SETTLEMENT STIPULATION
Page 2
lines located within said alleyway and any existing attachments for facilities, equipment
and joint users consistent with existing conditions and current practices of Idaho Power
will not be removed with this project.
One corten steel pole not exceeding a height of 84 feet above
grade will be placed in the southeast corner of the intersection of the above-referenced
alleyway and Eagle Road and will be placed on a concrete foundation.
The existing poles located on the east side of Eagle Road between
the alleyway and the point along the east side of Eagle Road at which the alignment
shifts to the southwest will be removed and replaced with four to five wooden poles in a
T A configuration. These poles will gradually decrease in height from 84 feet above
grade immediately south of the alleyway to a height of 63 feet above grade at the
southerly point of the alignment along the east side of Eagle Road where the
transmission line crosses Eagle Road in a southwesterly direction. The wooden pole
with an approximate diameter of 15 inches above grade and located at the southerly
point of the alignment along the east side of Eagle Road where the transmission line
crosses Eagle Road will be stabilized with guy wires.
From the southerly point of the alignment along the east side of
Eagle Road, the route of the transmission line will continue in a southwesterly direction
across Eagle Road and continue in a southwesterly alignment along the northerly
portion of the site that has been developed by Zamzows as illustrated on Exhibit 1
hereto. One self-supporting corten steel pole with a height not to exceed 63 feet above
grade and with a maximum diameter of four feet and located on a foundation not to
exceed 5 feet in diameter will be located on the Zamzows site in generally the north
SETTLEMENT STIPULATION
Page 3
central portion of that site. The transmission line will continue southwesterly along the
Zamzows property to a wooden pole with a height of approximately 63 feet that will be
located within the Eagle Bypass right-of-way and immediately southwest of the
Zamzows property.
From the wooden pole described in Paragraph 6 above, the
transmission line will cross the Eagle Bypass in the southwesterly alignment generally
illustrated on Exhibit 1 hereto to a pole located along the south side of the Eagle
Bypass. The transmission line will continue along the Eagle Bypass to the westerly
corporate limits of the City of Eagle and beyond on wooden poles not to exceed 64.
feet in height above grade.
It is the intent of the Parties that non-Idaho Power users presently
sharing the Idaho Power poles on the east side of Eagle Road between the alleyway
and the Eagle Bypass are to be removed and buried at no cost to Idaho Power. The
cost of the relocation shall be negotiated solely by the City and the non-Idaho Power
users. Idaho Power and the City agree to use their best efforts to work with the non-
Idaho Power users to facilitate the relocation of the non-Idaho Power users' services.
Idaho Power will bury the existing distribution line located on the
east side of Eagle Road between the alleyway located west of the Eagle Substation and
the existing underground dip located south of the Bypass. The cost of burying that
distribution line will be paid by the City to Idaho Power in quarterly payments as
described in Paragraph 13 herein. The cost of placing this distribution line underground
is estimated at the date of this Stipulation to be approximately $300 000. At an interest
rate of 7./0 for a term of approximately three (3) years, the total estimated cost is
SETTLEMENT STIPULATION
Page 4
$342 206.1 The actual total amount due Idaho Power from the City for burying the
distribution line described in this Paragraph will be determined as described in
Paragraph 10 herein.
10.The City agrees to pay Idaho Power the Company s actual costs of
engineering the plans to place the distribution line described in Paragraph 9 herein
underground. In addition , at the time Idaho Power completes the work order cost
estimate of placing the distribution line underground, the City, at its discretion, agrees to
select to pay Idaho Power either the Company s estimated work order cost or the
Company s actual costs of burying the distribution line which actual costs will not be
determined until completion of the project. Idaho Power will finance the final cost at an
interest rate of 7.8 % for a term of approximately three (3) years.
11.The City intends to pay the costs described in Paragraphs 9 and 10
herein by way of the Idaho Power franchise fee and any other funds that may be
available. The City agrees to take any and all action necessary to increase the current
franchise fee from 1 % to 30/0 and to apply, as described herein , 66.670/0 of the 30
franchise fee to such payment on a quarterly basis beginning the first month in which
the increased franchise fee is received but no later than January 1 , 2005 and until the
cost of the work identified in Paragraphs 9 and 10 herein is fully paid. The Parties
agree that the 30/0 franchise fee will remain in place at the City s request through
December 31 , 2010. The City agrees to apply no less than 66.670/0 of the 30/0 franchise
fee collected during that time period to the cost of burying additional distribution lines in
the City.
1 The total cost of $342 206 assumes a term of three (3) years at a rate of 7.8%. Based upon the present revenue received by the
City from a 1% franchise fee, it is anticipated that 66.67% of the 3% franchise fee will generate approximately $140 000 per year.
SETTLEMENT STIPULATION
Page 5
12.Pursuant to Idaho Code Section 50-329A(1 )(a), Idaho Power
consents to the increase in the City s franchise fee to 30/0 through December 31, 2010.
The City agrees to apply no portion of the franchise fee increase to any other activities
or projects except as stated herein. The City agrees to take any and all action
necessary to reduce its franchise fee from 30/0 to no more than 1 % and Idaho Power
shall have no obligation after December 31 , 2010 to collect and pay franchise fees to
the City above 1 % unless otherwise agreed to by Idaho Power or consistent with Idaho
law as of the date of this Stipulation.
13.Beginning on or about March 31,2005 and quarterly thereafter until
the total cost of the construction project described in Paragraphs 9 and 10 herein is
paid in full by the City to Idaho Power, the Company shall submit a report to the City
identifying the franchise fees collected on the City's behalf for the previous quarter.
Furthermore, beginning on or about March 31 , 2005 and quarterly thereafter until the
amounts described in Paragraphs 9 and 10 herein are paid in full, Idaho Power shall
invoice the City in an amount equal to 66.670/0 of the 30/0 franchise fee collected on
behalf of the City. Said invoiced amount shall be paid by the City to Idaho Power within
thirty (30) days from the date of mailing of the invoice from Idaho Power to the City.
14.With the exception of servicing emergency conditions associated
with existing facilities, Idaho Power agrees to undertake no contruction activities
associated with this project prior to January 1 , 2005 that would result in disruption of
traffic on either Eagle Road or those streets intersecting with Eagle Road between
State Street and the Eagle Bypass.
SETTLEMENT STIPULATION
Page 6
II.
On November 8, 2004 , the City convened a public hearing for the purpose
of reviewing and accepting public comments on the proposed alignment of the 138-
transmission line as illustrated in Exhibit 1. Following the public hearing, the City
Council voted to approve the proposed alignment identified in Exhibit
III.
The Parties have negotiated this Stipulation as an integrated settlement
document. The Parties shall support adoption of this Stipulation and acceptance of the
Stipulation as a reasonable resolution to all of the issues identified previously. The
Parties recommend that the Commission accept this Stipulation without material
change or condition. If the Commission adopts the Stipulation without material change
no Party shall appeal' any portion of this Stipulation or the issues resolved by this
Stipulation and no Party shall oppose the adoption of this Stipulation in this proceeding
or any related appeal.If the Commission requests testimony in support of the
Stipulation, the Parties shall each make witnesses available to provide testimony in
support of this Stipulation.
IV.
If the Commission rejects any or all of this Stipulation or imposes any
additional material conditions on approval of this Stipulation , each Party reserves the
right, upon written notice to the Commission and the other Parties to this proceeding,
within seven (7) days of the Commission s Order, to withdraw from this Stipulation.
such case, no Party shall be bound or prejudiced by the terms of this Stipulation and
each Party shall be entitled to undertake steps it deems appropriate.
SETTLEMENT STIPULATION
Page 7
The Parties agree that this Stipulation is in the public interest and that all
of its terms and conditions are fair, just and reasonable. The Parties maintain that the
Stipulation and acceptance by the Commission represents a reasonable resolution of
multiple issues identified in this matter.
VI.
This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
II /10 - 0
Date MONICA B. MOEN
Attorney for Idaho Power Company
Date SUSAN E. BUXTON
Attorney for City of Eagle , Idaho
Date B. NEWEL SQUYRES
Attorney for Eagle River, LLC
Date DONALD L. HOWELL, II
Deputy Attorney General
Attorney for IPUC Staff
SETTLEMENT STIPULATION
Page 8
The Parties agree that this Stipulation is in the public interest and that all
of its terms and conditions are fair, just and reasonable. The Parties maintain that the
Stipulation and acceptance by the Commission represents a reasonable resolution of
multiple issues identified in this matter.
VI.
This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
Date
Date
MONICA B. MOEN
Attorney for Idaho Power Company
'H-r.~
SA E. BUXT6
Attorney for City of Eagle, Idaho
Date B. NEWEL SQUYRES
Attorney for Eagle River, LLC
Date DONALD L. HOWELL, II
Deputy Attorney General
Attorney for IPUC Staff
SETTLEMENT STIPULATION
Page 8
The Parties agree that this Stipulation is in the public interest and that all
of its terms and conditions are fair, just and reasonable. The Parties maintain that the
Stipulation and acceptance by the Commission represents a reasonable resolution of
multiple issues identified in this matter.
VI.
This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
Date MONICA B. MOEN
Attorney for Idaho Power Company
Date SUSAN E. BUXTON
Attor ey for City of Eagle, Idaho
II /pJ0lfDate
Date DONALD L. HOWELL, II
Deputy Attorney General
Attorney for IPUC Staff
SETTLEMENT STIPULATION
Page 8
The Parties agree that this Stipulation is in the public interest and that all
of its terms and conditions are fair, just and reasonable. The Parties maintain that the
Stipulation and acceptance by the Commission represents a reasonable resolution of
multiple issues identified in this matter.
VI.
This Stipulation may be executed in counterparts and each signed
counterpart shall constitute an original document.
MONICA B. MOEN
Attorney for Idaho Power Company
Date
Date SUSAN E. BUXTON
Attorney for City of Eagle, Idaho
Date B. NEWEL SQUYRES
Attorney for Eagle River, LL
~.
I~ I ZCO f'
Date DONALD L OWELL, II
Deputy Attorney General
Attorney for IPUC Staff
SETTLEMENT STIPULATION
Page 8
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this '6A..day of November 2004, I served
true and correct copies of the above and foregoing STIPULATION FOR ACCEPTANCE
OF SETTLEMENT to the following parties:
Donald L. Howell, II
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, Idaho 83720-0074
Hand Delivered
S. Mail
Overnight Mail
FAX
Susan Buxton
Moore Smith
225 N. 9th Street, Suite 420
Boise, Idaho 83702
Hand Delivered
S. Mail
Overnight Mail
---X- FAX
City of Eagle
O. Box 1520
Eagle, Idaho 83616
Hand Delivered
S. Mail
Overnight Mail
FAX
B. Newel Squyres
Mary V. York
Holland & Hart, LLP
Suite 1400, U.S. Bank Plaza
101 S. Capitol Boulevard
O. Box 2527
Boise IO 83701
Hand Delivered
S. Mail
Overnight Mail
FAX
Eagle River, LLC
c/o Ennis Dale
485 E. Riverside Drive
Eagle, ID 83616
Hand Delivered
S. Mail
Overnight Mail
FAX
fJ~
MONICA B. MOEN
CERTIFICATE OF SERVICE
SEE CASE FILE
FOR MAP(S)