20200303_dh1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE:FEBRUARY 27,2020
SUBJECT:IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION TO
MODIFY SCHEDULE 30,SPECIAL CONTRACT WITH UNITED
STATES DEPARTMENT OF ENERGY;CASE NO.IPC-E-20-01.
On February 26,2020,Idaho Power ("Idaho Power"or "Company")filed an Amended
Application seeking approval of an asset transfer related to the Company's Application to modify
Schedule 30.To ensure the asset transfer doesn't receive posthumous Commission approval or
disapproval,which could ultimately jeopardize the outcome of the Commission's decision
regarding the modification of Schedule 30,Staff believes the asset transfer should be incorporated
into the process ahead of the Commission's decision.Commission Staff requests that the
Commission issue a Notice of Amended Application,Notice of Amended Comment Deadlines,
and Notice of Telephonic Hearing.
BACKGROUND
The genesis of the proposed modifications to Schedule 30 is an August 21,2019
transfer of title agreement entered between the Department of Energy ("DOE")and the
Company-transferring ownership of DOE owned asset to the Company.See Attachment 1.
Concurrently with the transfer agreement between the DOE and the Company,the Company
transferred partial ownership of those same assets!under a separate transfer of title agreement
entered between the Company and PacifiCorp,dated August 22,2019.See Attachment 2.
On February 10,2020,the Commission issued a Notice of Application and Notice of
Modified Procedure,establishing a public comment deadline of March 10,2020 and Company
reply deadline of March 17,2020.On February 4,2020,Commission Staff sent its First Production
i Regarding the assets transferred from Idaho Power to PacifiCorp,and for purposes of the Joint Ownership and Operating
Agreement,the Weighted Average Ownership Percentage will be 53.365%for Idaho Power and 46.635%for PacifiCorp.
DECISION MEMORANDUM 1
Request to the Company.In its First Production Response,filed on February 18,2020,the
Company responded to Staff's request regarding an asset transfer between the Company and
PacifiCorp,which is directly relates to the Company's Application.
After reviewing the Company's First Production Response,Commission Staff became
concerned about processing the Company's Application to modify Schedule 30 without knowing
if the Company's asset transfer to PacifiCorp would also be approved.Commission Staff asked
the Company to file the Amended Application,seeking approval of the PacifiCorp asset transfer
in addition to approval of the modifications to Schedule 30.Staff believes this ensures any decision
made regarding the asset transfer will not affect the outcome of modifications to Schedule 30.
THE AMENDED APPLICATION
The Company's Amended Application seeks approval of the asset transfer between the
Company and PacifiCorp in addition to approval of the modifications to Schedule 30 sought in the
Application.The Company states that the assets were transferred concurrentlyto PacifiCorp when
the DOE to Idaho Power transaction occurred.The reason for the transfer to PacifiCorp is that the
Company does not require full capacity for its service of the DOE and PacifiCorp serves customers
via the same assets.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Amended Application,Notice of
Amended Comment Deadlines,and Notice of Telephonic Hearing.Staff recommends extending
the public comment deadline to March 24,2020 and the Company reply deadline to March 27,
2020.Staff further recommends the telephonic hearing be held on March 24,2020.
COMMISSIONDECISION
Does the Commission wish to issue a Notice of Amended Application,Notice of
Amended Comment Deadlines extending the public comment deadline to March 24,2020 and the
Company reply deadline to March 27,2020,and Notice of Telephonic Hearing with a hearing to
be held on March 24,2020?
Dayn S.&die '
Deputy Attomey General
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DECISION MEMORANDUM 2