20141103_4513.pdf

DECISION MEMORAMMJM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOHANNA M.BELL
DATE:OCTOBER 31,2014
RE:IDAHO POWER COMPANY TARIFF ADVICE NO.14-02 REVISIONS TO
SCHEDULE 95,CITY OF GOODING,IDAHO
BACKGROUND
On October 29,2014,Idaho Power submitted Tariff Advice 14-02 to revise Idaho Power’s
Electric Service Schedule 95 for the City of Gooding.The existing one percent franchise fee
agreement with the City of Gooding,Idaho,is being extended for ten years.The proposed
franchise fee agreement was approved by the City of Gooding on September 15,2014 as
authorized in the attached City of Gooding Ordinance 689.The agreement was accepted by the
Idaho Power Company on September 29,2014.The franchise fee imposes a one percent fee from
the sale of electricity within the corporate limits of the City of Gooding and remains in effect
until the end of the ten year franchise agreement unless amended in the manner set forth by the
City of Gooding Ordinance 689.Idaho Power requests an effective date of December 2,2014 to
allow for a thirty day notice and to correspond with its billing cycle.
Idaho Title 50,Chapter 3,§50-329A allows cities to establish franchise fees assessed
upon a public service provider up to one percent without the consent of the public service
provider or the approval of a majority of voters of the city voting on the question at an election.
Franchise fees up to three percent are allowed with the consent of the public service provider or
the approval of a majority of voters of the city voting on the question at an election.In no case
shall the franchise fee exceed three percent unless a greater franchise fee is being paid under an
existing franchise agreement,in which case the franchise agreement may be renewed at up to the
DECISION MEMORANDUM 1 OCTOBER 31,2014
greater percentage,with the consent of the public service provider or the approval of a majority of
voters of the city voting on the question at an election.
STAFF RECOMMENDATION
Staff has reviewed the proposed tariff changes,the franchise agreements for the City of
Gooding,and the franchise fee requirements under Idaho Title 50,Chapter 3,§50-329/i.Staff
recommends that the Commission accept Idaho Power’s proposed revisions to Electric Service
Schedule No.95 Regulation Charges.Staff recommends an effective date of December 2,2014.
COMMISSION DECISION
Does the Commission wish to approve the changes set forth in this Tariff Advice?
1annaM.BeIV
DECISION MEMORANDUM 2 OCTOBER 31,2014
ORDINANCE NO.689
“AN ORDINANCE iN ACCORDANCE WITH IDAHO CODE 50-328,50-329 AND 50-329A
GRANTING A FRANCHISE TO IDAFIO PO:’ER COMPANY,A CORPORATION,AND TO
ITS SUCCESSORS AND ASSIGNS,TO CONSTRUCT,MAINTAIN AND OPERATE [N AND
UPON [HE PRESENT AND FUTURE STREETS.HiGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF TIlE CITY OF GOODING,IDAHO,
ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND
ELE:fRIC SERVICE TO THE CITY,THE INHABITANTS THEREOF,AND OTHERS FOR A
TERM OF TEN YEARS,INCLUDING THE NONEXCLUSIVE RIGHT 10 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 LIMITATiON.TERMS AND
CONDITIONS GOVERNING TILE EXERCISE OF SAID FRANCIIISE.”
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF TIlE CITY OF 000DING,IDAHO
THAT;
SECTION I.The City of Gooding,Idaho (hereinafter called the “City”)hereby grants to
IDAHO POWER COMPANY,a corporation.and to its successors and assigns (hereinafter callcd
the “Grantee”)the right (subject to the rights of the City set lhrth in Section 14 hereof),privilege
and franchise for a period often (10)years from and after 9/15/2014,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 Iuilure 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 thereot 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 anneNadon.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 he
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 term of
this franchise agreement.
ORDINANCE 689
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
benelit 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 hinds and the Grantee will be reimbursed to the extent any such funds are
actually obtained.
SECTION 4.It shall be lawful for [he Grantee to make all needfttl 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 (irantee,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 position in 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 intcdbrence 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,harmless from any and all expenses or liability arising from,and against or
by reason of any negligent act or omission of the Grantee,its representatives or cinployees,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 hefbre 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
ORDINANCE 689 2
Injury.Such insurance shall have minimum limits of$l,000,000 per occurrence.The City of
Gooding shall be named as an “Additional Named Insured”under Grantee’s insurance policy.
Should the minimum limits of insurance as set forth herein be increased above $1,000,000,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
changes therefore,nnd all regulation of the Grantee hereunder,shall at all times be subjcct to all
rules,regulations and orders that may be lawfully prescribed by the Idaho Public Utilities
Commission or by any other government 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.Ii 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°/b)of the “gross
revenues”for the preceding calendar quarter.For purposes of this Section,“gross revenues”shall
mean the amount of money hilled 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 outs 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 which results from deficiencies in such information provided by the
City.In the event the Cfty annexes a new area into its corporate limits,the term of this Section 9
regarding franchise fees shall not apply to the annexcd 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 continence 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 ftom the Idaho Public Utilities Commission for the collection of
the franchise fee in the rates charged by the 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 (3%),by obtaining the consent of the
Grantee or the approval ala 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 fninhise agreement.
ORDINANCE 689 3
SECTION 11.The Grantee shall keep accurate books of account for the collection of the
franchise fees for a period not to exceed three years 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 an 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
or equipment.I lowever.except in an emergency,no pruning shall be tLndertaken withotLt giving the
occupant of the adjacent property written or oral notice that such pruning will he performed.
SECTION 14.Inconsideration of Grantee’s undertaking hereunder as evidenced by its
acceptance hereoL 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 thc 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.
SEC’I’ION 15.In the event of an amendment to the laws,rules or regulations of the City of
Gooding 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 eases,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
havingjurisdiction or the Idaho Public Utilities Commission)for determination.
ORDINANCE 689 4
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 such
publication is required by law.
SECTION 19.The Grantee shall within thirty (30)days afier 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 betwccn the City and Grantee set forth in
Ordinance 638,dated September 17,2004,shall terminate upon the adoption and acceptance 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 hcreby adjudged and declared that this ordinance is necessary for the
preservation of the public peace,health and safety,and thcrcforc this ordinance shall take effect on
9/15/2014.
PASSED AND ADOPTED by the Council of the City’of Gooding this l5 day of September,2014.
IDAhO POWER COMPANY,as the franchisee.accepis the franchise set forth in the above
Ordinance and agrees to abide by the terms and conditions thercoE
DATED this _22t day of
Secretary
__Stpirr__Tt 2014f)
By:
Wcirrcn kline -GenIor”JLCC r.ttcLen*-,G*sforner Cpro.to
(Seal)
APPROVED by the Mayor this 5th day of September,2014.
ATTEST:
Hollye Lithmn-Acting City Clerk
Nels Mayor
ACCEP1’A$JE
C)ORDINANCE 689 5
Idaho Power Company Thirteenth Revised Sheet No.95-2
Cancels
I.P.U.C.No.29,Tariff No.101 Twelfth Revised Sheet No.95-2
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
(Continued)
CHARGE (Continued)
Effective Date
Municipality Ordinance No.Of Charge Charge
City of Fairfield 253 August 29,2013 1%
City of Filer 574 September 30,2009 2%
City of Fruitland 393 March 21,2001 1%
City of Garden City 850-06 September 27,2006 3%
City of Glenns Ferry 452 March 24,1999 1%
City of Gooding 689 December 2,2014 1%
City of Grand View 99-4 January 21,2000 1%
City of Greenleaf 136 October 22,1999 1%
City of Hailey 1057 September26,2010 1%
City of Hazelton 238 May 29,2009 1%
City of Hollister 2-2009 October 28,2009 1%
City of Idaho City 252 September 25,1996 1%
City of Inkom 96-195 July26,1996 1%
City of Jerome 959 February 28,2005 1%
City of Ketchum 1092 May 18,2012 3%
City of Kimberly 522 May 27,2005 1%
City of Leadore 32 June 20,2000 1%
City of McCall 862 April 29,2009 3%
City of Melba 212 February 28,2007 1%
City of Meridian 800 December 22,1998 1%
City of Middleton 287 October 22,1999 1%
City of Mountain Home 1251 October 24,1996 1%
City of Nampa 3980 October 1,2012 1.5%
City of New Meadows 306-06 May 30,2007 3%
City of New Plymouth 331 January31,2011 1.5%
City of Notus 259 August 28,2007 1%
City of Oakley 12-12-01 March 30,2012 1%
City of Pocatello 2511 October 26,1995 1%
City of Richfield 175 March 27,1996 3%
City of Shoshone 514 June 27,2008 1%
City of Star 196 August 20,2009 1%
City of Twin Falls 2927 March 31,2008 3%
City of Wendell 460 November 29,2006 1%
City of Wilder 486 May 27,2004 1%
IDAHO Issued by IDAHO POWER COMPANY
Issued —October 29,2014 Gregory W.Said,Vice President,Regulatory Affairs
Effective —December 2,2014 1221 West Idaho Street,Boise,Idaho
Advice No.14-02
I Idaho Power Company Tw€lfthThirteenth Revised Sheet No.95-2
Cancels
I I.P.U.C.No.29,Tariff No.101leveiithTweIfth Revised Sheet No.95-2
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
(Continued)
CHARGE (Continued)
Effective Date
Municipality Ordinance No.Of Charge Charge
City of Fairfield 253 August 29,2013 1%
City of Filer 574 September 30,2009 2%
City of Fruitland 393 March 21,2001 1%
City of Garden City 850-06 September 27,2006 3%
City of Glenns Ferry 452 March 24,1999 1%
City of Gooding 638689 Januanj 27,200SDecember 2.2014
1%
City of Grand View 994 January 21,2000 1%
City of Greenleaf 136 October 22,1999 1%
City of Hailey 1057 September 26,2010 1%
City of Hazelton 238 May 29,2009 1%
City of Hollister 2-2009 October 28,2009 1%
City of Idaho City 252 September 25,1996 1%
City of Inkom 96-1 95 July 26,1996 1%
City of Jerome 959 February 28,2005 1%
City of Ketchum 1092 May 18,2012 3%
City of Kimberly 522 May 27,2005 1%
City of Leadore 32 June 20,2000 1%
City of McCall 862 April 29,2009 3%
City of Melba 212 February 28,2007 1%
City of Meridian 800 December 22,1998 1%
City of Middleton 287 October 22,1999 1%
City of Mountain Home 1251 October 24,1996 1%
City of Nampa 3980 October 1,2012 1.5%
City of New Meadows 306-06 May 30,2007 3%
City of New Plymouth 331 January31,2011 1.5%
City of Notus 259 August 28,2007 1%
City of Oakley 12-12-01 March 30,2012 1%
City of Pocatello 2511 October 26,1995 1%
City of Richfield 175 March 27,1996 3%
City of Shoshone 514 June 27,2008 1%
City of Star 196 August 20,2009 1%
City of Twin FaIls 2927 March 31,2008 3%
City of Wendell 460 November29,2006 1%
City of Wilder 486 May 27,2004 1%
IDAHO Issued by IDAHO POWER COMPANY
Issued —Ju’y 12,201 3October 29,2014 Gregory W.Said,Vice President,Regulatory Affairs
Effective —Auguct 29,201 3December 2,2014 1221 West Idaho Street,Boise,Idaho
Advice No.13 0214-02