20190806_bab1jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:BEVERLY BARKER
DATE:AUGUST 2,2019
RE:IDAHO POWER TARIFF ADVICE NO.19-08
REVISION TO IDAHO POWER'S ELECTRIC SERVICE SCHEDULE 95
FRANCHISE AGREEMENT WITH THE CITY OF HAILEY
BACKGROUND
On July9,2019,Idaho Power (Company)submitted Tariff Advice No.19-08 to revise
Idaho Power's Electric Service Schedule 95 for the City of Hailey (City).The revised tariff
would enable the Company to increase the existing city-imposed franchise fee to three percent
(3%).Idaho Power requests an effective date of August 29,2019.
Idaho Power and the City of Hailey currentlyhave a franchise agreement in place.The
City of Hailey Ordinance No.1057 grants a franchise for a ten (10)year period and requires
Idaho Power to collect a one percent (1%)franchise fee from customers within the corporate
limits of the City.The fee became effective on September 26,2010.Section 11 of the
Ordinance states:
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 majorityof voters of the City
voting on the question at an election held in accordance with chapter 4,title
50,Idaho Code.See Ordinance at 4.
The City exercised its right to increase the fee during the term of the franchise agreement.
A Special Election was held on May 21,2019,and a simple majority of the qualified electors of
the City voted to increase the franchise fee to three (3%).
DECISION MEMORANDUM -1 -AUGUST 2,2019
Staff notes that Idaho Code §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.
STAFF RECOMMENDATION
Staff has reviewed the proposed tariff change,the franchise agreement for the City of
Hailey,and documentation provided the City regarding the Special Election.Staff also reviewed
the franchise fee requirements under Idaho Code §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 29,2019.
COMMISSION DECISION
Does the Commission accept Idaho Power's proposed revision to Electric Service
Schedule 95 with an effective date of August 29,2019?
BeverlyBr
i:udmemos/IPC Tariff Advice 19-08
DECISION MEMORANDUM -2 -AUGUST 2,2019