20190716_DH1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE:July 11,2019
SUBJECT:APPLICATION FOR APPROVAL OF THE SUNNYSIDE ASSETTRANSFERAGREEMENTBETWEENROCKYMOUNTAINPOWERANDTHECITYOFIDAHOFALLS;CASE NO.PAC-E-19-09.
On June 24,2019,PacifiCorp dba Rocky Mountain Power ("Company")filed an
Application requesting the Commission's approval of an Asset Purchase Agreement ("Asset
Purchase Agreement")entered into between the Company and the City of Idaho Falls ("City").
The Company submitted its Application under Idaho Code §§61-328,61-333.The Company
requests that the Application be processed by Modified Procedure.
THE APPLICATION
The Asset Purchase Agreement was submitted pursuant to the Service Allocation
Agreement entered into by the Company and the City on October 9,2017.Application at 2,See
Order No.33943.The Service Allocation Agreement provides the financial mechanisms for
transfers of service territoryand the associated assets.Application at 2.Under the Asset Purchase
Agreement,the Company will transfer electric distribution assets with a book value of $5,678 and
the right to serve one (1)customer to the City.Application at 1,Exhibit A.In exchange,the City
will compensate the Company for 167%of the customer's most recent 12-months electric bills,
which in this case add up to $3,816.Application at 2,Exhibit B.Pursuant to the 2017 Service
Allocation Agreement,the total amount to be paid to the Company by the City,including
separation costs,legal/transactional costs,tax gross-up,and the above mentioned expenses,will
be $9,440.Exhibit A.
DECISION MEMORANDUM l
STAFF RECOMMENDATION
Idaho Code §61-328 states the Commission "shall issue a public notice and shall conduct
a public hearing upon the Application"(emphasis added).To fulfill this statutory mandate,Staff
recommends the Commission issue a Notice of Application,Notice of Modified Procedure,and
Notice of Telephonic Hearing.Staff recommends a 21-day comment deadline,a seven (7)day
Company reply comment deadline,and a telephonic public hearing scheduled before the
Commission deliberates.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application,Notice of Modified Procedure,
and a Notice of Telephonic Public Hearing with comments due within 21-days of the notice,reply
comments due seven (7)days thereafter,and a telephonic public hearing before the Commission
deliberates?
Dayn Hardie
Deputy AttorneyGeneral
I:\Legal\ELECTRIC\PAC-E-19-09\memos\PACEl909dec memo_dh doc
DECISION MEMORANDUM 2