20221129Atlanta Power Workshop.pdf

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Introduction
Workshop Participation
Online:
To open chat in WebEx, please select the icon.
Type questions and comments in the chat box;
Please use the “All Panelists” option when using chat to
ensure your message will be seen.
To speak, click on the hand in the lower right corner by
your name.
On the phone:
*3 is the command to raise and lower your hand;
When your line has been un-muted, you will hear an
announcement indicating that.
This PowerPoint is available on the commission’s
homepage at puc.idaho.gov.3
Workshop Participation
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Please hold questions until the end of the presentation.
At the conclusion of the presentation, questions will be
answered by Staff.
•Established in 1913. Idaho Code Sections 61, 62, and 63.
•The Commission regulates Idaho's investor-owned utilities,
ensuring adequate service and reasonable rates.
•The Commission is made up of three Commissioners appointed
by the Governor. The Commissioners make the decisions in
each case.
•Commission Staff is made up of Auditors, Utilities Compliance
Investigators, Engineers, and Technical Analysts.
•The Staff is conducting this workshop. Staff is one of the parties
in the case providing written comments to the Commissioners.
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What is the Idaho Public
Utilities Commission?
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Workshop Purpose
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Informational session to learn about the pending sale and CPCN
transfer of Atlanta Power Company Case No. ATL-E-22-02
This Public Workshop is not part of the official case record.
Summarize the proposed sale and CPCN transfer.
Provide customers an opportunity to meet Commission Staff.
Provide customers an opportunity to ask questions to Staff.
Provide instructions on how to submit written public
comments.
System Sale
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On February 23, 2022, the Commission held a Show Cause
Hearing where Mr. Israel Ray testified on behalf of the
Company. Case No. ATL-E-22-01
The Hearing focused on four main issues:
Whether the company is in negotiations for sale of the
Company;
Investigations regarding safe and reliable service;
Identification of reliable contact information for the
Company;
Appraisal of the Company’s value.
Sale and Transfer
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Conditions for Sale and CPCN Transfer of Atlanta Power:
The Company or purchaser must submit a contract and bill of
sale for the sale of the Company’s assets including its CPCN, to
the Commission.
The Company or purchaser must submit a fully executed
Purchase Sale Agreement (“PSA”) to the Commission.
The purchaser must file a case seeking approval for transfer of
the Company’s CPCN under Idaho Code 61-328.
Case No. ATL-E-22-02
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ATL-E-22-02 Application
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Greylock Energy Holdings LLC applied to the Commission to
purchase all of the assets of the Atlanta Power Company.
The purchase includes the Atlanta Power Company CPCN for the
provision of electric service to approximately seventy-five
customers in and near Atlanta, Idaho.
Greylock Energy Holdings is an LLC that was formed for
acquiring, owning, and operating the Atlanta Power Company.
The company has two owners (Gene Haught and Nick Jones)
each with fifty percent ownership.
If the sale and transfer are approved by the Commission, Mr.
Haught and Mr. Jones plan to equally share responsibility for
owning and running Atlanta Power Company.
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Idaho Code 61-328
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Idaho Code Section 61-328 governs the sale/transfer of electric
utility property in Idaho.
In order to authorize the sale or transfer, the Commission must
find:
That the transaction is consistent with the public interest;
That the cost of and rates for service will not be increased by
reason of such transaction;
That the applicant has the bona fide intent and financial
ability to operate and maintain the subject property in the
public interest.
CPCN Conditions For All IPUC Regulated Utilities
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“Before any CPCN may issue[,] a certified copy of its articles of
incorporation, or charter, if the applicant be a corporation, shall
be filed in the office of the commission. The commission shall
have power, after hearing involving the financial ability and good
faith of the applicant and necessity of additional service in the
community to issue said certificate as prayed for, or to refuse to
issue the same, …”
CPCN Transfer
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For the Atlanta Power Company CPCN No. 300 to transfer to
the buyers, the Commission must find that the transfer
complies with Idaho Code.
Idaho Code 61-328 Electric utilities—Sale of property to be
approved by Commission applies in this situation.
Staff Review
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Members of Commission Staff visited Atlanta on August 16 and
17th, 2022 to meet with the Company’s owner and the buyers
and perform a general inspection of the system.
The intent of the inspection was to review the current overall
condition of the system and determine progress made since
issuance of the 2018 Staff Report in Case No. ATL-E-18-01.
Staff has and will continue to review all associated documents in
Cases No. ATL-E-22-01 and ATL-E-22-02.
Staff’s review includes prior cases, Commission Orders, customer
complaints, and customer comments.
Staff’s review also includes analysis to check for compliance with Idaho
statutes.
Next Steps
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Staff conducts a Virtual Public Workshop.
Parties including Staff prepare and file comments.
The Commission conducts a Virtual Public Hearing.
The public prepares and files comments.
Parties prepare and file reply comments.
The Commission approves or denies the sale and CPCN transfer
and issues a Final Order.
Parties can accept the Commission’s Final Order or file for
reconsideration.
Next Steps Continued
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If approved, Staff will work with the buyers to ensure they
understand requirements associated with being a regulated
utility.
If approved, the Company name will not change but the
ownership and operation will.
The buyers will inform customers of any changes to Company and
emergency contacts.
The buyers will provide communication regarding local billing and
payment processes.
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Event Date
Case Filed October 14, 2022
Virtual Public Workshop November 29, 2022
Party and Staff Comments Due December 6, 2022
Virtual Customer Hearing December 13, 2022
Customer Comments Due December 15, 2022
Party Reply Comments Due December 15, 2022
Final Order TBD
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Consumer Assistance
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Utility Compliance Investigators assist customers to resolve
issues and or disputes with the Company.
Investigators monitor compliance with laws, commission rules,
and the Company tariff.
Investigators review issues from previous cases, review previous
complaints, investigate consumer issues raised in the case, and
review submitted comments from customers.
Customer Comments
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Customer Comments are due by December 15, 2022
Reference Case Number ATL-E-22-02
Methods to file comments:
Online -Internet Website Address –puc.Idaho.gov
Select -Case Comment Form
Email -Address: [e-mail]
Mail -IPUC, P.O. Box 83720, Boise, ID 83720-0074
Fax -Letters or comment sheets to the Commission at
208-334-3762
Once comments are submitted, they become part of public
record and are available on the PUC’s Public Website.
Idaho Public Utilities Homepage
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Functions of the
Commission video
Presentation
slides are
located in this
section
Comment Form Page
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FAQs
Q. In the past, there was speculation that Atlanta Power could
become a CO-OP. What happened?
A. There have not been applications put before the
Commission to consider the Company becoming a CO-OP.
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FAQs
Q. What did Staff review regarding 61-328 requirements?
A:
Public interest –Staff will describe its analysis in Staff
Comments and the Commission will determine if the sale
and transfer is in the public interest.
Rate for supplying service -No change of rates is being
asked for or considered in this case. If the sale and transfer
is approved customer rates will not change with this case.
Bona fide intent and financial ability -Staff looked at the
financial ability of the potential new owners and their plan
for financing the needed improvements of the Company.
The Commission will determine if the buyers meet the
requirements.
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FAQs
Q. What happens if the Commission does not approve the sale
and transfer?
A.The parties can file for reconsideration in accordance with
Commission Rules of Procedure. The Commission can either
grant or deny requests for reconsideration.
Q.What happens if reconsideration is not granted, and the
Commission ultimately does not approve the sale and transfer?
A. Atlanta Power would continue to be owned by Mr. Israel
Ray.
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FAQs
Q. What is the purchase price of the Company?
A. The purchase price is $365,000.00 and details will be
included in Staff Comments.
Q. What improvements do the new owners plan to make?
A: The potential owners have developed a five-year
improvement plan that is included in the buyer's
application. You can view the document on the IPUC
Website using the instructions provided in slide 25.
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