20050712_1253.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:KEITH HESSING
DATE:JULY 6, 2005
RE:APPROVAL OF IDAHO POWER TARIFF ADVICE NO. 05-07;
MUNICIPAL FRANCHISE FEE FOR THE CITY OF ABERDEEN
On June 28 2005 , Idaho Power Company filed Tariff Advice No. 05-07 which added a
1 % Franchise Fee for the City of Aberdeen to sheet No. 95-1 of its electric tariff. The Company
requests that the fee become effective July 28 2005. Sheet No. 95-1 lists municipal franchise
fees that Idaho Power Company pays municipalities for the use of city street rights-of-way and
easements to locate facilities for the purpose of providing service to customers. Commission
acceptance of Third Revised Sheet No. 95-1 allows Idaho Power to recover the cost of the
franchise fees from its electric customers who live within the municipality. This method of cost
recovery has long been the policy of the Public Utilities Commission. The Company s filing that
includes the Aberdeen City Ordinance establishing the franchise fee is attached.
COMMISSION DECISION
I have reviewed Idaho Power s Application and recommend that Third Revised Sheet No.
95-1 be accepted for filing with an effective date of July 28, 2005. Does the Commission agree?
i:udmemoslipctaO507
DECISION MEMORANDUM JULY 6, 2005
MAGGIE BRILZ [phone]F~ [phone]
mbrilzCQ2idahoDower.com
Director, Pricing
June 28, 2005
Ms. Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P. O. Box 83720
Boise, ID 83720-0074
RE:Tariff Advice No. 05-
Revision to Schedule 95
Dear Ms. Jewell:
Idaho Power Company herewith transmits for filing Third Revised Sheet No.
95-1. This tariff revision implements the 1 % franchise fee adopted by the City of Aberdeen.
Also transmitted are a copy of Schedule 95 in legislative format and a copy of the
ordinance adopting the franchise fee.
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 Com pany Third Revised Sheet No. 95-
Cancel s
Second Revised Sheet No. 95-I.P.C. No. 27. Tariff No.1 01
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCH ISE 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 charg es 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 Aberdeen 267 July 28, 2005
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
City of Garden City 669 June 26, 1996
City of Glenns Ferry 452 March 24, 1999
City of Good ing 638 January 27, 2005
City of Grand View 99-January 21 , 2000
City of Greenleaf 136 October 22 , 1999
IDAHO
Issued - June 28, 2005
Effective - July 28 , 2005
Advice No. 05-
Issued by IDAHO POWER COMPANY
John R. Gale , Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, Idaho
Idaho Power Company Second Revised Sheet No. 95-
Cancels
First Revised Sheet No. 95-I.P.C. No. 27. Tariff No. 101
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCH ISE 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 charg es 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
Cit of Aberdeen 267 Jul 2005
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
City of Garden City 669 June 26, 1996
City of Glenns Ferry 452 March 24 , 1 999
City of Good ing 638 January 27 , 2005
City of Grand View 99-January 21 , 2000
City of Greenleaf 136 October 22, 1999
. ..
ORDINANCE NO.267
AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328, 50-329 AND 50-329A
GRANTING A FRANCHISE TO IDAHO POWER COMPANY, A CORPORATION, AND
ITS SUCCESSORS AND ASSIGNS, TO CONSTRUCT, MAINTAIN AND OPERATE
AND UPON THE PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF ABERDEEN, IDAHO
ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY
AND ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS
FOR A TERM OF 10 YEARS INCLUDING THE NONEXCLUSIVE RIGHT TO
PHYSICALLY LOCATE AND MAINTAIN TELEPHONE CABLE, FIBER OPTICS OR
OTHER COMMUNICATIONS FACILITIES; SETTING FORTH AN AGREEMENT NOT TO
COMPETE, RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE
PAYMENT OF FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS, TERMS
AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF ABERDEENIDAHO THAT:
SECTION 1. The City of Aberdeen, Idaho (hereinafter called the "City ) hereby grants
to IDAHO POWER COMPANY, a corporation, and to its successors and assigns (hereinafter
called the "Grantee ) the right (subject to the rights of the City set forth in Section 14 hf".reot),
privilege and franchise for a period of ten (10) years from and after A P R I L . ~ QQ.2,
however, with the right to amend by mutual agreement in accordance with Section 15 , to
construct, maintain and operate in and upon the present and future streets, alleys, highways and
other public places within the corporate limits of the City, electric utility property and facilities
for supplying electricity to the City, and the inhabitants thereof, and to persons and corporations
beyond the limits of the City, including the nonexclusive right to physically locate and maintain
telephone, cable, fiber optics or other communications facilities of the Grantee or other parties
(provided, that Grantee shall comply with the City s requirements for cable system franchises)
all subject to the terms and conditions hereinafter specified. In the case of annexation of
property to the corporate limit, such area will be considered under this agreement, upon effective
date of the annexation, subject to Section 9 hereof. All such electric utility property and facilities
now maintained by the Grantee within the streets, alleys, highways and other public places
within the corporate limits of the City shall be deemed covered by this ordinance as provided
herein.
SECTION 2. All of the Grantee s electric property and facilities in and upon the present
and future streets, alleys, highways and public places within the corporate limits of the City shall
be constructed and at all times maintained in good order and condition and in accordance with
standard engineering practices and all applicable safety codes and lawful governmental
regulations, including all applicable state and federal regulations and all construction standards
presently in effect by the Idaho Public Utilities Commission or adopted by that Commission
during the tenn of this franchise agreement.
. . '
SECTION 3. Upon request of the City, the Grantee shall relocate its facilities as
necessary within the present and future streets, alleys, highways and other public places owned
by the City. The City shall have no responsibility for the costs of such relocations. The Grantee
shall bear the cost of relocating its facilities at the City s request, unless the facilities are to be
relocated for the benefit of a third party, in which case the third party shall pay the costs of
relocation. In the event federal, state or other funds are available in whole or in part for utility
relocating purposes, the City shall apply for such funds and the Grantee will be reimbursed to the
extent any such funds are actually obtained.
SECTION 4. It shall be lawful for the Grantee to make all needful or convenient
excavations and/or installations in any of the present and future streets, alleys, highways and
other public places within the corporate limits of the City for the purpose of erecting and
maintaining the posts, poles, towers, or other supports for its wires or for the purpose of laying,
maintaining and operating conduits, vaults and wires and other conductors underground for the
purpose aforesaid, or to repair and improve such electric power and light system and to extend
the same; provided that when the Grantee or any person or corporation under the authority of this
franchise, shall disturb any of said streets, alleys, highways or other public places for the
purposes aforesaid, he, it or they shall restore the same to good order and condition as soon as
practicable and without unnecessary delay and failing to do so after five days ' notice from the
City, or its duly authorized officer or officers, then the City may place said street, alley, highway
or public place in such condition at the cost and expense of the Grantee, and said Grantee will
forthwith pay the full cost and expense thereof upon demand of the City. All facilities
constructed under this ordinance shall be placed and maintained at such places and positions
or upon such public ways and public places as shall not interfere with the passage of traffic and
shall confonn to all applicable laws, rules and regulations.
SECTION 5. The City shall have the right and privilege to string and maintain wires for
its internal communications for its fire, police, airport and other services upon the poles and
other facilities erected and maintained by the Grantee hereunder, subject to the Rules and
Regulations of the Idaho Public Utilities Commission. The City shall string, maintain and
operate such wires at its own expense, risk and responsibility, and in accordance with all legal
requirements and good engineering practices and in such manner as not to impose any additional
expense upon Grantee of its said poles and facilities. Any such wires of the City shall be subject
to interference by the Grantee only when necessary in the maintenance, operation or repair of the
Grantee s own fixtures, wires, facilities and appurtenances.
SECTION 6. The Grantee shall at all times indemnify and hold the City, its officers
employees and agents, hannless from any and all expenses or liability arising from or by reason
of any negligent act or omission of the Grantee, its representatives or employees, in the
construction, operation or maintenance of any of the Grantee s electric utility property or
facilities.
SECTION 7. Upon acceptance of this franchise by Grantee and before Grantee shall
have any rights hereunder Grantee shall file with the City Clerk a Certificate of Insurance
evidencing General Liability Insurance which covers claims for Bodily Injury, Property Damage
and Personal Injury. Such insurance shall have minimum limits of $1 000,000 per occurrence.
.. .. .
The City of Aberdeen shall be named as an "Additional Named Insured" under Grantee
insurance policy. Should the minimum limits of insurance as set forth herein be increased above
000 000, pursuant to the Idaho Tort Claims Act (Idaho Code Section 6-901 et. seq.) or any
similar legislation, the Grantee shall be required to provide the City with a new Certificate of
Insurance evidencing the higher limits upon the City s request.
SECTION 8. The electric service to be furnished to the public hereunder, and all rates
and charges therefore, and all regulation of the Grantee hereunder, shall at all times be subject to
all rules, regulations and orders that may be lawfully prescribed by the Idaho Public Utilities
Commission or by any other governmental authority now or hereafter having jurisdiction over
such matters. During the term of this franchise, Grantee shall at all times assure that customers
within the City have access to customer service from the Grantee as required by the Idaho Public
Utilities Commission.
SECTION 9. If authorized by formal adoption of city resolution, as compensation for
the right, privilege and franchise hereby granted, Grantee agrees to pay to the City on or before
. the 30th day of January, April, July and October, an amount equivalent to one percent (1 %) of
Grantee s "gross revenues" for the preceding calendar quarter. For purposes of this Section
gross revenues" shall mean the an1ount of money billed by the Grantee for the electricity it sells
within the corporate limits of the City to customers, less uncollectibles. The City shall provide
appropriate information to the Grantee to allow the Grantee to identify which of its customers are
located within the corporate limits of the City for purposes of paying franchise fees. Grantee
shall not be responsible for any failure to pay franchise fees which results from deficiencies in
such information provided by the City. In the event the City annexes a new area into its
corporate limits, the terms of this Section 9 regarding franchise fees shall not apply to the
annexed area until sixty (60) days after the City has supplied the Grantee with appropriate
information for the identification of the Grantee s customers within the annexed area.
The Grantee s franchise fee payment obligations hereunder shall commence with the start
of the Grantee s first full billing cycle following the effective date of this ordinance; provided
that the Grantee must first receive approval from the Idaho Public Utilities Commission for the
collection of the franchise fee in the rates charged by Grantee.
SECTION 10. The City shall have the right during the term of this franchise agreement to
increase the franchise fee hereunder up to three percent (30/0), by obtaining approval of a
majority of voters of the City voting on the question at an election held in accordance with
chapter 4, title 50, Idaho Code. Any such vote to increase the franchise fee hereunder shall
provide that the increased franchise fee will apply to any electric service provider (other than the
City) who utilizes the City s streets, alleys or other public places to provide electrical service
within the City, during the term of this franchise agreement.
SECTION 11. The Grantee shall keep accurate books of account for the collection of the
franchise fees hereunder and the City shall have the right to inspect the same at all times during
business hours, and from time to time audit the same for the purpose of determining gross
revenues under Section 9 above.
. .
SECTION 12. The franchise fees paid by the Grantee hereunder will be. in lieu of and as
payment for any tax or fee imposed by the City on the Grantee by virtue of its status as a public
utility including, but not limited to, taxes, fees or charges related to easements, franchises, rights-
of-way, utility lines and equipment installation, maintenance and removal during the term of this
franchise agreement.
SECTION 13, The Grantee shall have the right and privilege, insofar as the City is able
to grant the same, in accordance with National Arborist Association standards, of the .pruning of
all trees which overhang the present and future streets, alleys, highways and other public places
within the corporate limits of the City, in such a manner and to such extent as will prevent the
branches or limbs or other parts of such trees from touching or interfering with its wires, poles
and other fixtures and equipment. However, except in an emergency, no pruning shall be
undertaken without giving the occupant of the adjacent property written or oral notice that such
pruning will be performed.
SECTION 14. In consideration of Grantee s undertaking hereunder as evidenced by its
acceptance hereof, the City agrees not to engage in the business of providing electric service
during the life of this franchise or any extension thereof in competition with the Grantee, its
successors and assigns; but nothing herein contained shall be construed or deemed to prevent the
City from exercising at any time any power of eminent domain granted to it under the laws of the
State of Idaho. The City shall not grant a franchise to another electric service provider during the
term of this franchise agreement unless the electric service provider has received approval to
provide electrical service within the City from the Idaho Public Utilities Commission, and the
City has imposed the same franchise fee on the electric service provider as paid by the Grantee.
SECTION 15. In the event of an amendment to the laws, rules or regulations of the City
of Aberdeen the State of Idaho or the Public Utilities Commission of Idaho applicable to this
franchise, or for periodic review of any section of this agreement, the terms of this franchise and
the rights and privileges hereby conferred may be changed, altered, amended or modified upon
mutual agreement between the City and the Grantee. In all cases, 60 days notice shall be
required on the part of City or Grantee to reopen the agreement pursuant to this section.
SECTION 16. Any violation by the Grantee of the provisions of this ordinance, franchise
and grant or any material portions thereof or the failure promptly to perform any of the
provisions thereof shall be cause for the forfeiture of this franchise and grant and all rights
hereunder by the City after sixty (60) days' written notice to the Grantee and the continuance of
such violation, failure or. default; however, this provision shall not prevent the Grantee from
submitting such question of violation or forfeiture to the appropriate forum (which may include
the district court having jurisdiction or the Idaho Public Utilities Commission) for determination.
SECTION 17. Sale, assignment or lease of this franchise is prohibited without
notification to the City.
SECTION 18. The Grantee shall assume the cost of publication of this franchise as suchpublication is required by law.
SECTION 19. The Grantee shall within thirty (30) days after final passage of this
ordinance, file with the City Clerk its acceptance of this franchise in writing signed by its proper
officers and attested by its corporate seal.
SECTION 20. The existing franchise agreement between the City and Grantee set forth
0 RD. , dated 0 C T.:8 E B 5,198 shall terminate upon the adoption andacceptance of this ordinance.
SECTION 21. Inasmuch as the Grantee has constructed and now is maintaining and
operating the electric utility property and facilities in and upon the streets, alleys, highways, and
public places in the City, it is hereby adjudged and declared that this ordinance is necessary for
the preservation of the public peace, health and safety, and therefore this ordinance shall take
effect on A P R T I 'J 7 I 'J QD t)
PASSED AND ADOPTED by the Council of the City of Aberdeen this
APRIL
' ,
20
day of
APPROVED by the Mayor this .day of ApR I I , 20115-.
ATTEST:~~ Ik~~
ayor
City Clerk
(Seal)
ACCEPT ANCE
IDAHO POWER COMPANY, as the franchisee, accepts the franchise set forth in the
above Ordinance and agrees to abide by the terms and conditions thereof.
'"' -t
~ j \
DATED this day of
\,\ I
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f', 1::.J.._.-2.- .
By:
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r-
~k~ "..\ 1 ~
- \ '\ ""\.-
Daniel B. Minor
Senior Vice President -DeliveryATTEST:
~vf!~-Secretary
(Seal)