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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