20080122Application.pdf

ATLANTA POWER CO.
11140 Chicken Diner Road
Caldwell, Idaho 83607 RECE
ZOll8 JAW 22 Plc¡ 12= 09
Januar 22, 2008
Idaho Public Utilties Commission
O. Box 82720
Boise, Idao 83720-0074 !fIL-Ë -OB-O(
ATTENTION COMMISSION SECRETARY AND HEAD LEGAL SECRETARY
Atlanta Power Company requests tht the Commission issue an Order approving
issuace of these securities on or before Februar is, 2008.
Enclosed with ths cover letter is the Company s Application for approval to incur debt of
$110,000.00 through two private loan to the Company by individuals.
Also enclosed is our check to the Commission in the amount of $1 02.50 for payment of
the filing fees.
Sincerely,
is~~
President
Isral Ray
Atlahta Power Co. Inc.
1140 Chicken Dinner Road
Caldwell, Idaho 83607
[phone]
President
\2= 09
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF ATLANTA POWER COMPANY FOR )
AUTHORIZATION TO BORROW FUDS TO PAY)
EXTRAORDINARY COSTS INCURRD DUE TO )
THE FAILURE OF APPLICANTS HYRO- )ELECTRIC TURBINE )
)
CASE NO. ATL-E-08-1
APPLICATION
COMES NOW ATLANA POWER COMPANY, hereinafter referred to as
"Applicant" or" Company" and holder of Certificate of Public Convenience and
Necessity No. 300 from the Idaho Public Utilties Commission hereby applies to the
Commission for authorization to borrow $110,000.00 to pay extrrdinar costs
experienced in the year 2007 due to the failure of its hydroelectrc tubine.
GENERA
Applicant is a public utility electric corporation with the meanng of the Idao
Public Utilty Law, is duly organzed and existing under the laws of the State ofIdao
and is engaged in conducting a genera electrc utility service business in and around the
Communty of Atlanta in Elmore County, Idaho, having its principal office and place of
business at 11140 Chicken Dinner Road, Caldwell, Idaho. Curently the Company
provides electrc service to approximately 84 residential and commercial customers.
1
COMMUNICATIONS
Correspondence regarding this Application should be addressed to:
Israel Ray Robert SmithPresident Utility Consultat
Atlanta Power Co. 2209 N. Bryson Rd.
11140 Chicken Dier Road Boise, Idaho 83713
Caldwell, Idaho 83607 [phone]
[phone] e-mail utilitygroup~yahoo.com
BACKGROUND
In early June of 2007 the Company's hydroelectrc tubine at the Kiby Dam on
the Middle Fork of the Boise River failed. The Company, in order to provide continued
service to customers, aranged for the temporar rental of a diesel generator and then
purchased and installed a permanent back-up diesel generator. The diesel generators
provided electric service to customers while the hydro tubine was removed and repaired.
The tubine has been repaired and retued to service. The Company has incured
extrordina costs of $1 19,922.49 for the repairs to the tubine and the acquisition and
operation of the diesel generators whle the tubine was out of service. These costs have
been paid though tempora loans from the owners and deferred salares and wages.
Attched to this Application as Exhbit No.1, is a detaled schedule of the extraordina
costs incured.
The Commission by Order Number 30417 dated August 28,2007 (Case No.
ATL-E-07-01) authorized the Company to defer its extraordinar cost resulting from the
tubine failure. The Commission in that order acknowledged that is was aware the
Company would be filing an additional application proposing a method to recover those
extraordinar costs. Applicant is curently working on a reçovery proposa and will fie
another application in the near futue for that purose.
2
Attched as Exhbit NO.2 is a copy of a legal notice that will be published in the
Idaho Statesman Newspaper. The legal notice is being submitted to the newspaper
coincident with the filing of this Application with the Commssion. Exhbit NO.3
attched is a copy of the Company's 2006 Income Statement and Balance Sheet.
AUTHORIZATION TO INCUR DEBT
Applicant requests the Commssions authorization to incur $110,000.00 in debt to
pay some of the extraordina costs discussed above. The Owners of the Company have
diverted fuds from other business activities to pay these extraordinar costs ahd canot
continue to car the burden without jeopardizing the viabilty of their other business
activities. The Company has aranged for two loans as follows: 1) a $100,000.00 loan
from Mr. Eric A1berdi for a term of seven (7) years at a rate of 14% per anum; 2) a
$10,000.00 loan frm Mr. Alva Greene for a term of one (l) year at a rate of 10.75%.
Mr. Greene is a commercial customer of Atlanta Power and the loan repayment will be
serviced through credits of $882.65 per month on the electrc bil of ths customer. Mr.
Alberdi's loan will require monthly payments in the amount of $1,874.00. The owners of
Atlanta Power Company will treat the extraordina costs in excess of these loan amounts
($9,922.49) as a temporar loan to the Company at an interest rate of 12% anually.
Interest will accrue on the temporar loan until such time as the cash flow of the
Company will allow the Company to repay the loan to owners.
Atlanta Power Company requests that the application be considered by the
Commission under the rules of Modified Procedure.
Applicant respectfully request expeditious and favorable consideration of this
application.
Dated this 22nd day of January 2008.
Respectfully submitted
Atlanta Power Company~~
Israel Ray, President
ATLANTA POWER COMPANY
Exraordinary Deferrd Costs
2007 Turbine Failure
Amount Payable
Date Payee Pupose
8/31/2007 2,113.64 Western States Equipment Parts & Labor Gen-Set
8/31/2007 383.83 Western States Equipment Parts & Labor Gen-Set
6/25/2007 3,028.00 GNI Waterman Water Gates
8/31/2007 501.25 Jones, Franc et al CPA Fees
811712007 301.61 United Mufer & Brake Muffer & Parts for Gen-Set
$/2812007 5,293.38 Western Construction July Gen Rent
9/2012007 7,950.00 Western States Cat Purch Gen Set
8/17/2007 625.40 Boise Rigging Parts for OH Crane
7111/2007 2,00.00 Double"C"Parts & Labor for Gates
7/20/2007 300.00 Double"C"Parts & Labor for Gates
9/2012007 140.00 Double"C"Parts & Labor for Gates
8115/2007 2,000.00 Double"C"Turbine, Crane & Gen Set
9120/2007 5,017.19 Double"C"Turbine, Crane & Gen Set
7/3/2007 350.00 Bob Stern Labor, Remove Turbine
7/5/2007 211.89 Gary Mallett Computer Parts
6/29/2007 456.83 D&B Supply Compressor for Bladder Gates
7/13/2007 1,860.00 Double"C"OH Crane Steel
6/2912007 58.30 North American Reccling Crane Steel
7/2012007 53.00 North American Recycling Crane Steel
711/2007 2,800.00 Tom's Service Idaho City Get-Set Fuel
6/15/2007 3,779.97 Baird Oil Get-Set Fuel
6/29/2007 42.10 Pacific Steel OH Crane Steel
8/13/2007 73.08 Root Rents Lift to unload gen-set
8/13/2007 296.69 Pioneer Diesel Batteries for Gen _set
7/1612007 537.01 Beaver Lodge Lodging while bldg OH Crane
8/17/2007 101.71 Harvey's Auto Parts Gen-set Battery
8/9/2007 221.60 Baird Oil Gen-Set Fuel
8/9/2007 4,128.30 Baird Oil Gen-Set Fuel
10/5/2007 357.35 Baird Oil Gen-Set Fuel
10/5/2007 3,237.24 Baird Oil Gen-Set Fuel
10/3/2007 4,611.00 Western Const Gen-Set Rent
10/1212007 43,000.00 Yanke Machine Turbine Repair
10/121007 10,000.00 Yanke Machine Turbine Repair
1011212007 301.15 Home Depot cement Gen-Set Bldg
10/121007 47.54 Home Depot cement Gen-Set Bldg
10/1212007 71.38 Idaho Concrete cement Gen-Set Bldg
812512007 850.00 John Inama Labor & Equip - Pull Turbine
10/1212007 600.00 Raymond Robison Labor & Equip - Replace Turbine
8120/2007 450.00 Hydraulic Turbine Consultants Consulting re turbine repair
10112/2007 1,500.00 Ray Bros Seed Transport & Install Turbine
To 11/30/07 4,500.00 775.79 Robert Smith, Consultant Prepare Financial data & Appl.
TOTAL DEFERRED $101,931.00 $ 12,995.23 $114,926.23
Interest owed Israel Ray - Deferred Wages 1,188.00
Interest owed Ray Bros Seed to 12131 3,808.26
Total Extraordinary Costs $119,922.49
Exhibit No. 1
LEGAL NOTICE
Atlanta Power Company fied an Application with the Idaho Public Utilties Commission
(PUC) on Janua 22,2008 for authorization to incur Debt. Durg 2007, the Company's
hydroelectrc turbine failed. Short term extraordinar expenses incurd to maintan
service to the communty of Atlanta, Idao while the tubine was out of service together
with repair costs to the tubine totaled approximately $120,000. Interi short term
advances from the Company's owners paid these extraordinar costs. The Company has
applied to the PUC for authorization to borrow $110,000 from two individuas to repay
most of the short term advances.
A copy of the Application is available for inspection at the Idao Public Utilties
Commission, 472 W. Washington St., Böise, Idao and is also available on-line at the
PUC website ww.puc.idaho.gov. A copy may be reviewed in Atlanta by calling (208)
864-2137 to make arangements.
Comments regarding ths application should be mailed to the Company and to the
PUC at P. O. Box 83720, Boise, Idaho 83720-0074. Comments can also be submitted on
the PUC website.
Exhbit No.2
1 Exhibit No. 3
2 Exhibit No. 3
ANNUAL REPORT FOR SMALL ELECTRIC UTILITIES
YEAR ENDED December 31, 2005
STATEMENT OF INCOME
Currnt
Year
Increase
(Decrease)
Prior Year
Operating Revenues
Operating Revenue Deductions:
Operating Expense
Depreciation
Other Taxes
Federal Taxes on Income
Total Revenue Deductions
Net Operating Revenues
Income from Merchandising Jobbing & Contract
Income from Non-Utilty Operations
Gross Income
Interest on long-Term Debt
Other Interest Charges
Net Income
67,937
42,270
13,969
56,239
11,698
11,698
9,012
2,686
DETAIL OF OPERATING REVENUES
Flat Rate Sales
Metered Sales Residential
Metered Sales Commercial
Other Electricity Sales
Sales to Irrigation Customers
Total Operating Revenue
* Hook~up or connection fee collected $
(8,009)
6,911
1,853
(90)
8,675
(16,684)
(16,684)
(168)
(16,516)
. To what account were they booked?
3
lastYr
75,946
35,359
12,115
90
47,564
28,382
28,382
9,180
19,202
Exhibit No. 3