HomeMy WebLinkAbout20231219PACE2325_dec_at.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: ADAM TRIPLETT
DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 19, 2023
SUBJECT: IN THE MATTER OF ROCKY MOUNTAIN POWER AND THE CITY OF
IDAHO FALL’S JOINT APPLICATION FOR APPROVAL OF THE
GOOSE LAKE ASSET TRANSFER AGREEMENT; CASE NO. PAC-E-23-
25
On December 8, 2023, Rocky Mountain Power, a division of PacifiCorp,
(“Company”), and the City of Idaho Falls (“City”) jointly applied for an order approving the
transfer of electric facilities serving one customer of the Company to the City. The Company
asserts that the proposed transfer complies with Idaho Code § 61-328. The Company requests
that the Application be processed by Modified Procedure.
BACKGROUND
In 2017, the Company and City entered a Service Allocation Agreement to decrease
service duplication and increase stability in their service areas. The Service Allocation
Agreement permits the transfer of a customer’s service between the parties if the utility acquiring
the customer pays the other just compensation for lost revenues and distribution facilities used to
service the customer. Under the Service Allocation Agreement “just compensation” is defined as
167% of the customer’s total electric bills for the last twelve months.
THE APPLICATION
A request has been made for the Company to transfer its electrical service for two
vacant lots without a meter to the City. Because the lots are vacant and meterless, the Company
represents that the sale price reflects the only value of the equipment used for the customer’s
service without the prior twelve months of revenue. The Company asserts that the asset transfer
DECISION MEMORANDUM 2
is in the public interest because it reduces service duplication while also providing the Company
just compensation.
STAFF RECOMMENDATION
Idaho Code § 61-328 states that the Commission “shall conduct a public hearing”
before authorizing certain asset transfers by electric public utilities or electrical corporations. To
fulfill this statutory requirement, Staff recommends the Commission issue a Notice of
Application, Notice of Modified Procedure, and a Notice of Telephonic Public Hearing. Staff
recommends a January 25, 2024 public comment deadline, a February 1, 2024 company reply
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 a public comment deadline of
January 25, 2024, a company reply deadline of February 1, 2024, and a telephonic public hearing
before the Commission deliberates?
_____________________________
Adam Triplett
Deputy Attorney General