20091214_2787.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: DECEMBER 10, 2009

SUBJECT: IDAHO POWER COMPANY’S APPLICATION FOR AUTHORITY TO
SELL TO RAFT RIVER RURAL ELECTRIC COOPERATIVE, INC.
CERTAIN ELECTRIC DISTRIBUTION FACILITIES CURRENTLY
OWNED BY IDAHO POWER, CASE NO. IPC-E-09-31

On November 10, 2009, Idaho Power Company (“Idaho Power” or “Company”) filed
an Application with the Commission for authority, pursuant to Idaho Code § 61-328 and RP 52,
to sell to Raft River Electric Cooperative, Inc. (“Raft River”) certain electric distribution
facilities and appurtenant rights-of-way owned by Idaho Power in southern Twin Falls County,
Idaho.
THE APPLICATION
Idaho Power states that “Raft River is a non-profit cooperative electrical corporation,
incorporated under the laws of the state of Idaho, providing retail electric service to its members
in the states of Idaho, Utah, and Nevada.” Application at 2. Raft River is headquartered in
Malta, Cassia County, Idaho and serves customers in Idaho, Utah, and Nevada. Id. “Raft River
is not subject to regulation by the Commission.” Id.
In the proposed transaction, Idaho Power has agreed to sell to Raft River the portion
of the Border 011 Feeder Line (“Feeder Line”) located in the State of Idaho. Id. In its
Application, Idaho Power cites to the approval of its Joint Application in IPC-E-00-17 wherein
Raft River acquired the portion of the Feeder Line located in the State of Nevada as part of the
transaction pertaining to the sale of “certain Idaho Power electrical distribution facilities in
southern Owyhee County, Idaho.” Id.; see also Order No. 28631. The Feeder Line is “used
DECISION MEMORANDUM 2
solely to serve Raft River and is classified as a dedicated distribution primary facility.” Id. The
wholesale transportation of energy across the Feeder Line to Raft River’s facilities is subject to
FERC jurisdiction. Id.
Idaho Power’s method of valuation for the Feeder Line, including appurtenant right-
of-way permits, “will be . . . the net book cost as valued on Idaho Power’s books and records
immediately prior to the closing date adjusted for income tax impacts.” Id. at 3. “Idaho Power
estimates that the sale price will be approximately $72,000.00, including a tax gross-up.” Id.
Idaho Power does not use the Feeder Line to serve any retail customers. Id.
STAFF RECOMMENDATION
Staff has reviewed Idaho Power’s Application and recommends that it be processed
through Modified Procedure with a corresponding 21-day comment period. See IDAPA
31.01.01.201-204.
COMMISSION DECISION
Does the Commission wish to process Idaho Power’s Application through Modified
Procedure with a 21-day comment period?

M:IPC-E-09-31_np