HomeMy WebLinkAbout20210518_ct1jo.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CURTIS THADEN
DATE:MAY 14,2021
RE:IDAHO POWER TARIFF ADVICE NO.21-01;
REVISION TO IDAHO POWER'S ELECTRIC SERVICE SCHEDULE 95
FRANCHISE AGREEMENT WITH THE CITY OF HAGERMAN
BACKGROUND
On April 23,2021,Idaho Power submitted Tariff Advice No.21-01 to revise Idaho
Power's Electric Service Schedule 95 to add the City of Hagerman.The purpose of the filing is
to pass through a new 1%franchise fee imposed on gross revenue from the sale of electricity to
customers within corporate limits of the City of Hagerman.The new agreement would remain in
effect for ten (10)years from the effective date,unless amended in the manner set forth by
Ordinance No.1090.Copies of the 1)Ordinance,which sets forth the City Franchise Agreement
with the Company,and 2)the proposed revisions to Schedule No.95 (Sheet No.95-2)are
attached.
The proposed franchise fee agreement was approved by the City of Hagerman on March
3,2021,as authorized in the attached City of Hagerman Ordinance No.1090.The agreement
was accepted by Idaho Power Company on March 3,2021.Idaho Power requests an effective
date of May 27,2021.
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 majorityof 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 has reviewed the proposed tariff change,the franchise agreement for the City of
Hagerman,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 May 27,2021.
COMMISSION DECISION
Does the Commission wish to accept Idaho Power's proposed revision to Electric Service
Schedule 95 with an effective date of May 27,2021?
Curtis Thaden
cloud:udmemos/Tariff Advice No.21-01
ORDINANCE NO.1090
"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 HAGERMAN,IDAHO,
ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYINGELECTRICITY AND
ELECTRIC SERVICE TO THE CITY,THE INHABITANTS THEREOF,AND OTHERS FOR
A TERM OF TEN (10)YEARS,INCLUDING THE NONEXCLUSIVE RIGHT TO
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 LIMITATIONS,TERMS
AND CONDITIONS GOVERNING THE EXERCISE OF SAID FRANCHISE."
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF HAGERMAN,
IDAHO THAT;
SECTION 1.The City of Hagerman,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 of ten (10)years from and after _3 gg_(the
effective date of this ordinance),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 future
streets,alleys,highways and other public places within the corporate limits of the City,electricutilitypropertyandfacilitiesforsupplyingelectricitytotheCity,and the inhabitants thereof,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 propertyto the corporate limit,such area will be considered under this agreement,
upon effectivedate of the annexation,subject to Section 9 hereof.All such electric utilityproperty
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.
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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
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.It 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 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 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 crected and maintained by the Grantee hereunder,subject to the Rules and Regulations
of the Idaho Public Utilities Commission.The City shan 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 of the Grantee's electric utility property or facilities.
SECTION 7.Upon acceptanceof this franchise by Grantee and before Grantee shall have
any rights hereunder,Grantee shall file with the City Clerk a Certificate of Insurance evidencing
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General Liability Insurance which covers claims for Bodily Injury,Property Damage and PersonalInjury.Such insurance shall have minimum limits of $1,000,000 per occurrence.The City of
Hagerman 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 regulationof 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.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 commence with the startoftheGrantee's first full billingcycle 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 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.
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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,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 and equipment.However,except in an emergency,no pruningshall 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 undertakinghereunder as evidenced by its
acceptancehereof,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 Hagerman,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 agreementbetween the City and the Grantee.In all cases,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 thereofor the failure promptly to perform any of the provisions
thereofshall 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.
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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 publicationof this franchise as such
publication is required by law.
SECTION 19.The Grantee shall within thirty (30)days after 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 between the City and Grantee set forth in
Ordinance No.1076 dated May 2nd 2018,shall terminate upon the effective date 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 hereby adjudged and declared that this ordinance is necessary for the
preservation of the public peace,health and safety,and therefore this ordinance shall take effect
on December 16,2020
PASSED AND ADOPTED by the Council of the City of Hagerman,Idaho this 3rd day of March,
2021
APPROVED by the Mayor this 3rd day of March 2021
ATTEST:
Mayo
ACCEPTANCE
IDAHO POWER COMPANY,as the franchisee,accepts the franchise set forth in the
above Ordinance and agrees to abide by the terms and conditions thereof.
DATED this 3rd day of March 2021.
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By:
Adam Richins
ATTEST:SVP &Chief Operating Ofñcer
ecretary
(Seal)
6
Idaho Power Company Twenty-Fourth Revised Sheet No.95-2
CancelsI.P.U.C.No.29,Tariff No.101Twenty-Third Revised Sheet No.95-2
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
(Continued)
CHARGE (Continued)
Effective DateMunicipalityOrdinanceNo.Of Charqe 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 Hagerman 1090 May 27,2021 1%
City of Hailey 1057 August 29,2019 3%
City of Hazelton 258-2019 April 16,2019 1%
City of Hollister 04-03-19 June 28,2019 1%
City of Idaho City 252 September 25,1996 1%
City of Inkom 96-195 July 26,1996 1%
City of Jerome 1137 April 1,2015 1%
City of Ketchum 1092 May 18,2012 3%
City of Kimberly 622 May 1,2015 1%
City of Leadore 2018-1 October 2,2018 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 January 31,2011 1.5%
City of Notus 259 August 28,2007 1%
City of Oakley 12-12-01 March 30,2012 1%
City of Payette 1476 September 29,2020 1%
City of Pocatello 2956 November 2,2015 1%
City of Richfield 175 March 27,1996 3%
City of Rockland 30 April 16,2019 1%
City of Shoshone 514 June 27,2008 1%
City of Star 196 August 20,2009 1%
City of Sun Valley 519 January 26,2018 1%
City of Twin Falls 2927 March 31,2008 3%
City of Wendell 529-2016 September 29,2016 1%
City of Wilder 486 May 27,2004 1%
IDAHO Issued by IDAHO POWER COMPANY
Issued -April 23,2021 Timothy E.Tatum,Vice President,Regulatory Affairs
Effective -May 27,2021 1221 West Idaho Street,Boise,Idaho
Advice No.21-01
Idaho Power Company Twenty-ThiFd_Fou_rt_h Revised Sheet No.95-2
Cancels
I.P.U.C.No.29,Tariff No.101Twenty SocondThird Revised Sheet No.95-2
SCHEDULE 95
ADJUSTMENT FOR MUNICIPAL
FRANCHISE FEES
(Continued)
CHARGE (Continued)
Effective DateMunicipalityOrdinanceNo.Of Charge Charqe
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 Haqerman 1090 May 27,2021 1%
City of Hailey 1057 August 29,2019 3%City of Hazelton 258-2019 April 16,2019 1%
City of Hollister 04-03-19 June 28,2019 1%
City of Idaho City 252 September 25,1996 1%
City of Inkom 96-195 July 26,1996 1%
City of Jerome 1137 April 1,2015 1%
City of Ketchum 1092 May 18,2012 3%
City of Kimberly 622 May 1,2015 1%
City of Leadore 2018-1 October 2,2018 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 January 31,2011 1.5%
City of Notus 259 August 28,2007 1%
City of Oakley 12-12-01 March 30,2012 1%
City of Payette 1476 September 29,2020 1%
City of Pocatello 2956 November 2,2015 1%
City of Richfield 175 March 27,1996 3%
City of Rockland 30 April 16,2019 1%
City of Shoshone 514 June 27,2008 1%
City of Star 196 August 20,2009 1%
City of Sun Valley 519 January 26,2018 1%
City of Twin Falls 2927 March 31,2008 3%
City of Wendell 529-2016 September 29,2016 1%
City of Wilder 486 May 27,2004 1%
IDAHO Issued by IDAHO POWER COMPANY
Issued -_Auguet 2^,2020April 23,2021 Timothy E.Tatum,Vice President,Regulatory Affairs
Effective -_September 29,2020May27,2021 1221 West Idaho Street,Boise,Idaho
Advice No.20 0121-01