20190816final_order_no_34420.pdf

Office of the Secretary
Service Date
August 16,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION )CASE NO.ATL-E-18-01
OF ATLANTA POWER COMPANY )SERVICE AND CUSTOMER RELATIONS )ORDER NO.34420
This matter comes before the Commission on the Petition for Reconsideration
submitted by the Atlanta Power Company ("AtlantaPower"or "Company")on Commission Order
No.34296.Having reviewed the record,the Commission vacates the portion of Order No.34296
that levied a $12,000 fine against the Company for six separate violations of Idaho Public Utilities
Law,for reasons explained below.
BACKGROUND
On January 2,2018,a customer of Atlanta Power filed a formal Complaint against the
Company for failure to provide safe and adequate service.The Commission issued a Notice of
Investigation.Order No.33988.In April 2018,the Commission issued an Order requiring the
Company to immediately repair a downed power line and required Commission Staff to file a
report regarding health and safety issues with the Company's electrical system.Order No.34017.
In January 2019,the Commission issued a Notice of Hearing &Order to Show Cause requiring
the Company to demonstrate why the Commission should not order the Company to file verified
gross operating revenues for calendar years 2016 and 2017,pay past due regulatory fees and
interest,and pay $12,000 in civil penalties for violations of the Idaho Public Utilities Law.Order
No.34209.The Company did not appear at the Hearing and did not otherwise respond to the
Notice.The Commission found the Company to be in violation of Idaho Code §§61-401,61-
406,61-602,61-603,61-610,61-1001,and 61-1003,and fined the Company for its violations.
Order No.34296.
On April 24,2019,the Company filed a Petition for Reconsideration.
On May 10,2019,the Commission granted the Petition for Reconsideration.Order
No.34334.In granting reconsideration,the Commission found it was "appropriate to reconsider
our findings based on the Company's and Intervenors'stated desire to facilitate a sale of the
Company's system.We find the public interest may be served by such a sale."Id.at 4.Among
other requirements,the Commission ordered Atlanta Power to engage in good faith negotiations
to reach an agreement to sell its assets.
ORDER NO.34420 1
On May 29,2019,the Company,the Atlanta Electrical Consumer Co-op,Inc.("Co-
Op"),and Commission Staff engaged in a settlement conference.
On June 12,2019,Commission Staff filed a report with the Commission updating the
Commission on the status of negotiations and other compliance actions taken by the Company.
On July 1,2019,the Commission issued a Notice of Comment Period on
Reconsideration.Order No.34365.Comments were filed by Commission Staff and the Co-Op.
COMMENTS ON RECONSIDERATION
Commission Staff recommended the Commission vacate the $12,000 penalty because
Staff perceived an agreement between the Company and the Co-Op to be likely but not certain,
and Staff did not want to jeopardize the potential agreement.Staff further stated its belief that a
sale of the Company would be an effective means of addressing the underlyingconcerns that led
to the Complaint.
The Co-Op updated the Commission on the physical status of the Atlanta Power
electrical system and indicated a number of investments that could be made immediately that are
necessary for safe and reliable service.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Title 61 of the Idaho Code,
includingIdaho Code §§61-501,61-508,61-515,61-520,61-528,61-533,and 61-612.Under
Idaho Code §61-501,the Commission is "vested with power and jurisdiction to supervise and
regulate every public utility in the state and to do all things necessary to carry out the spirit and
intent of the provisions of this act."
In our Notice of Comment Period on Reconsideration,we requested comment on:
1)whether the fme was correctly imposed based on the findings
of fact and conclusions of law in Order No.34296;2)whether
new facts have arisen since the Commission issued Order No.
34296 that would make the fine no longer just and reasonable;
and 3)if the fine was properly assessed and continues to be just
and reasonable,should the Commission make the full fine
payable to the state treasury to the credit of the general fund
under Idaho Code §61-712 or should the Commission seek to
compromise the penalty under Idaho Code §61-712B?Order
No.34365.
ORDER NO.34420 2
Having reviewed the comments,we find it reasonable to vacate the $12,000 penalty to avoid
disrupting what appears to be a likelypositive outcome;a mutuallyagreed upon sale between the
Company and the Co-Op for the Company's assets.
The findings of fact and conclusions of law in Order No.34296 continue to be valid.
However,intervening circumstances-specificallythe good faith negotiations and demonstrated
progress toward a sale of the Company's assets-lead us to vacate the penalty.We find that a
willing sale of the Company's assets to an entitythat will be responsive to customers,personnel,
and the public is the top priority.Such a sale would address the problems that gave rise to the
Complaint,and would provide a durable solution to the problems that have long beset Atlanta
Power.
If the sale does not go through,we have numerous tools at our disposal to ensure that
Atlanta Power fulfills all of its duties as a regulatedpublic utility.Those duties include but are not
limited to:providing safe and reliable service,complying with the National Electric Safety Code,
responding to customer complaints in an adequate and timely manner,filing annual reports (both
past due and on an ongoing basis),providing non-discriminatory service throughout its service
area,and complying with audit and production requests from Commission Staff.We intend to
closely monitor Atlanta Power,as long as it remains a regulated public utility,to guarantee that
the Company meets its obligations to its customers.
ORDER
IT IS HEREBY ORDERED that the portion of Order No.34296 that imposed a fine of
$12,000 for violations of Idaho Code §§61-401,-610,-1003,and -1001,is vacated.
THIS IS A FINAL ORDER ON RECONSIDERATION.Any party aggrievedby this
Order or other final or interlocutoryOrders previously issued in this case may appeal to the
Supreme Court of Idaho pursuant to the Public Utilities Law and the Idaho Appellate Rules.See
Idaho Code §6 l -627.
ORDER NO.34420 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2019.
PAUL KJELL ER,PRESIDENT
KRI E RAPER,CO SIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Haman
Commission Secretary
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ORDER NO.34420 4