20160803_5022.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KLEIN
DATE:AUGUST 1,2016
RE:IDAHO POWER PROPOSAL TO REVISE SCHEDULE 95 (TARIFF
ADVICE NO.16-02)
BACKGROUND
On July 20,2016,Idaho Power submitted Tariff Advice No.16-02 to revise Idaho
Power’s Electric Service Schedule 95 for the City of Donnelly.The existing one percent
franchise fee remains unchanged.
The proposed franchise fee agreement was approved by the City of Donnelly on July 1,
2016,as authorized in the attached City of Donnelly Ordinance 231.The agreement was
accepted by Idaho Power Company on July 19,2016.The agreement imposes a one percent
franchise fee from the sale of electricity within the corporate limits of the City of Donnelly and
remains in effect until the end of the ten (10)year franchise agreement unless amended in the
manner set forth by the Ordinance 231.Idaho Power requests an effective date of
August 30,2016.
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.
DECISION MEMORANDUM -1 -AUGUST 1,2016
STAFF RECOMMENDATION
Staff has reviewed the proposed tariff change,the franchise agreement for the City of
Donnelly,and the franchise fee requirements under Idaho Title 50,Chapter 3 §50-329A.Staff
recommends that the Commission accept Idaho Power’s proposed revision to Electric Service
Schedule 95 Municipal Franchise Fees.Staff recommends an effective date of August 30,2016.
COMMISSION DECISION
Does the Commission wish to approve the changes set forth in this Tariff Advice?
Daniel Klein
I udmcmosflari{T Adice No 16-02
DECISION MEMORANDUM -2-AUGUST 1,2016
Idaho Power Company Eighth Revised Sheet No.95-1
Cancels
I.P.U.C.No.29,Tariff No.101 Seventh Revised Sheet No.95-1
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’s
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
Municipality Ordinance No.Of Charge Charge
City of Aberdeen 303 July 31,2015 1%
City of Bellevue 2008-06 February 28,2008 3%
City of Blackfoot 2133 October 1,2015 1%
City of Bliss 13-71 September 26,2013 1%
City of Boise 6820 October 1,2012 1.5%
City of BuhI 835 November 20,1997 1%
City of Caldwell 2133 June 26,1996 1%
City of Carey 96-06 March 25,1997 1%
City of Cascade 537 November 16,1995 1%
City of Chubbuck 498 January21,1999 1%
City of Council 362 September 1,2000 1%
City of Dietrich 2007-1 September 27,2007 1%
City of Donnelly 231 August 30,2016 1%
City of Eagle 349 December29,2010 1%
City of Eden 2015-3 November 2,2015 1%
City of Emmett 858 June 26,1996 1%
IDAHO Issued by IDAHO POWER COMPANY
Issued —July 20,2016 Timothy E.Tatum,Vice President,Regulatory Affairs
Effective—August 30,2016 1221 West Idaho Street,Boise,Idaho
Advice No.16-02
I Idaho Power Company ScvcnthEighth Revised Sheet No.95-1
Cancels
I I.P.U.C.No.29,Tariff No.101Si4hSeventh Revised Sheet No.95-1
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’s
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
Municipality Ordinance No.Of Charge Charge
City of Aberdeen 303 July 31,2015 1%
City of Bellevue 2008-06 February 28,2008 3%
City of Blackfoot 2133 October 1,2015 1%
City of Bliss 13-71 September 26,2013 1%
City of Boise 6820 October 1,2012 1.5%
City of BuhI 835 November 20,1997 1%
City of CaIdwell 2133 June 26,1996 1%
City of Carey 96-06 March 25,1997 1%
City of Cascade 537 November 16,1995 1%
City of Chubbuck 498 January21,1999 1%
City of Council 362 September 1,2000 1%
City of Dietrich 2007-1 September 27,2007 1%
City of Donnelly 4-ga231 January 30,200SAugust 30.2016
1%
City of Eagle 349 December 29,2010 1%
City of Eden 201 5-3 November 2,2015 1%
City of Emmett 858 June 26,1996 1%
IDAHO Issued by IDAHO POWER COMPANY
Issued —October 1,201 SJuly 20,201 6Grogory W.SaidTimothy E.Tatum,Vice President,Regulatory Affairs
Effective —November 2,2OlSAugust 30,2016 1221 West Idaho Street,Boise,Idaho
Advice No.15 1216-02
ORDINANCE NO.231
“AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328,50-329 AND 50-329A
GRANTING A FRANCHISE TO IDAHO POWER COMPANY,A CORPORATION,AND TO
ITS SUCCESSORS AND ASSIGNS,TO CONSTRUCT,MAINTAIN AND OPERATE IN AND
UPON THE PRESENT AND FUTURE STREETS,HIGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF DONNELLY,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 (TEN)YEARS,INCLUDING TIlE NONEXCLUSWE RIGHT TO
P1 IYSJCALLY LOCATE AND MAINTAIN TELEPHONE,CABLE,FIBER OPTICS OR
OTHER COMMUNICA’rIONS 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 TIlE CITY OF DONNELY,IDAHO
THAT;
SECTION 1.The City ofDonnelly,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 hereof),privilege and
franchise for a period often (10)years from and after publication,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 ftLture 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
nonexelusive 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 term 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,aHeys,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
ofrelocating its facilities at the City’s request,unless the facilities are to bc 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.Ii 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 ofthe 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 ofsaid
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 ofthe 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 in or upon such public ways and public places as shall not interfere
with the passage of traffic and shall conform 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 ofthe 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,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 employees,in the
construction,operation or maintenance of any ofthe Grantee’s electric utility property or facilities.
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SECTION 7.Upon acceptance of this franchise by Grantee and before Grantee shafl 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
Donnelly 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 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 amount 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 conunence 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 (3%),by obtaining the consent of the Grantee or
the 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
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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 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 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,rightsof-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 Arbodst 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 maimer 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
Donnelly 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 franeluse 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.
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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 hercunder 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 such
publication is required by law.
SECTION 19.The Grantee shall within thirty (30)days after final passage ofthis 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 agrecment between the City and Grantee set forth in,
Ordinance 183,dated July 17,2006,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 ie ublic peace,health and safety,and therefore this ordinance shall take effect on
PAS PD AND ADOITFD b the Council of the City of________________this 2.’?day of
,20i.Cf
APPROVED by the Mayor this 2-7 day of JILLLJ ,20 H’.
ATTEST:
_________________________
BI1&AKOCh,Mayor
ami Hedges,City Clerk)
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ACCEPTANCE
IDAHO POWER COi’iWAI\W,as the franchisee,accepts the franchise set forth in the
above Ordinance and agrees to abide by the terms and conditions thereof.
DATED this /1 dayof ,20M1
By:______________
U Lisa 0mw
ATTEST:Sr.Vice President -Operations
Secretary
(Seal)
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