20190501Cross-Petition.pdf

EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-03 14
IDAHO BAR NO. 10446
RECEIVED
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Street Address for Express Mail:
472W, WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITTES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF ATLANTA POWER COMPANY SERVICE
AND CUSTOMER RELATIONS
CASE NO. ATL.E-18-01
CROSS.PETITION FOR
RECONSIDERATION
STATEMENT OF FACTS
On January 2,2018, Atlanta Power customer, Mary Drake, formally complained to the
Commission that the Atlanta Power Company was not maintaining adequate service as required
by ldaho Code g 6l-302.
On February 20,2018, the Commission ordered its Staff to investigate the Company's
service reliability, maintenance and operations, and customer relations, and to report the
investigation's results to the Commission. The Commission also ordered the Company to
respond to Ms. Drake's formal complaint within 2l days of the service date of the Summons, and
to respond to Staffls investigative efforts. Order No. 33988.
On April 2,2018, the Commission ordered the Company to immediately repair a downed
service line that was reported to the Commission by Company customers on March 14,2018.
The Commission also ordered Staff to investigate and report on health and safety issues related
to Atlanta Power. Order No. 34017.
On April L6,2018, Staff completed a Safety Report in compliance with Order No. 34017.
This report was attached to Staff s May 10, 2018 Decision Memorandum on this matter.
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1CROSS-PETITION MAY 1,2019
On April 19,2018, the Commission granted a petition to intervene filed by Atlanta Water
Association, Inc. and Atlanta Landowner's Association. Order No. 34036. Both entities are
represented by the same attorney.
On December 28,2018, Staff filed a report fulfilling its obligations under Order Nos.
33988 and 34017 . Among other things, Staff reported the Company had failed to file statutorily
required annual gross receipts reports and pay annual regulatory fees.
On January 25,2019, the Commission issued a Notice of Hearing & Order to Show
Cause ordering the Company to appear before the Commission on February 19,2019, and show
cause why the Company should not be fined for failing to fulfill various statutory obligations.
Order No. 34209.
On February 19,2019, the Show Cause Hearing was held as scheduled. The attorney for
Atlanta Water Association, Inc. and Atlanta Landowner's Association was present. Commission
Staffls attomey also was present. No representatives of Atlanta Power or the complainant were
present.
On April 2,2019, the Commission issued an Order levying fines against the Company for
failing to respond to the formal complaint against it, failing to fulfill statutory duties, and failing
to appear at the Show Cause Hearing. The Commission ordered the Company to file verified
returns, and pay $12,103 by April 26,2019, or incur an additional penalty of $2,000 per day until
the Company's obligations were satisfied. Order No. 34296.
On April 24,2019, the Company, Israel Ray, and his brother Gene Ray, met with
Commission Staff regarding the complaints against the Company and the fine levied against the
Company. The Rays insisted the Company was now running better than ever. Israel Ray
advised Staff that the Company's address for purposes of service should be changed from 11140
Chicken Dinner Rd, Caldwell, Idaho to 1275 Dolphin Way, Fairbanks, Alaska. Staff also
informed the Rays that the Idaho Secretary of State's Office shows the Company has been
administratively dissolved for years.
Staff also explained that because the annual fee is based on a utility's gross receipts, and
the Company had not filed reports showing gross receipts for calendar years 2016 and20l7,the
Commission had required the Company to pay the minimum statutory fee of $50 per year for two
years, plus interest, for total fees with interest of $ 103. Israel Ray paid $ 159.18 to the
Commission, which was the back due amount plus additional accumulated interest, along with
2CROSS-PETITION MAY 7,2019
the minimum statutory fee for 2018. Ray stated that he would contact his bookkeeper to get the
necessary information to file the Company's annual verified returns showing gross receipts for
all outstanding years. Later that day, Atlanta Power filed a Petition for Reconsideration of Order
No. 34296 with the Commission.
On April 29,2019, the Commission received the annual verified returns showing gross
receipts from Atlanta Power for 2016,2017 , and 201 8. A true-up of the annual fees is now
required based on the actual gross receipts for 2016,2077, and 2018.
DISCUSSION
Staff requests the Commission grant reconsideration. In light of the Company's efforts to
address the concerns raised by the Commission in Order No. 34296, and because Staff believes
the fined amount would be better served addressing the needs of the Company's electric system,
Staff believes it would be unreasonable to impose the $12,000 in fines levied in Order No. 34296
at this time. If the Commission grants reconsideration, then Staff intends to offer argument and
evidence that this money could be better spent on system upgrades or an emergency reserve that
would result in safer and more reliable operations.
At the Aprrl24,20l9 meeting between Commission Staff and Atlanta Power, the
Company signaled to Staff a willingness to sell the system, pending agreement on price and
terms with another entity. Staff believes it could be in the public interest for the Company to sell
the system to another entity, and that this option should be explored fully.
Atlanta Power, as currently configured, is an electrical corporation and public utility as
defined in ldaho Code $$ 61-119 and -129, which subjects the Company to the Commission's
jurisdiction and obligates the Company to comply with Title 61 of Idaho Code. Over the years,
the Commission has reviewed complaints alleging Atlanta Power had violated various aspects of
Title 6l . See e.9., Case Nos. ATL-E-03-01 and ATL-E-09-01. Staff recognizes the town of
Atlanta's unique attributes-such as its geographic isolation in rugged terrain and small
population size-make it challenging for the Company to sustain an economical power
distribution system in a safe and adequate manner and to fulfill its Title 61 obligations.
If the Company agrees to sell its system to another entity, that sale cannot be finalized
until it is approved by the Commission under ldaho Code $ 6l-328. The buyer would need to
show it has the bona fide intent and financial ability to operate and maintain the system in the
JCROSS-PETITION MAY 1,2079
public service, that the cost of and rates for supplying service will not increase as a result of the
transaction, and that the transaction is consistent with the public interest.
Staff notes that if the buyer is an entity that is excluded from the definition of a regulated
electrical corporation or public utility under ldaho Code $$ 6l-119 and -129, such as an entity
not "operating or managing [an] electric plant for compensation," then the buyer would not be
subject to the Commission's jurisdiction under Title 6l of Idaho Code. Electrical cooperatives,
for example, typically fall outside the Commission's jurisdiction.
CONCLUSION
Staff believes granting the Petition for Reconsideration filed by Atlanta Power would
allow the Commission to determine the most reasonable use for the fined amount. If the
Commission does grant reconsideration, Staff requests the Commission set a timeline for
reconsideration that would be long enough to provide opportunity for Atlanta Power to negotiate
an agreement to sell the utility to another entity.
Respectfully submitted this day of May 2019.
General
i:umisc/comments/atle I 8. lej cross petition for reconsideration
Deputy
4CROSS-PETITION MAY 1,2019
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS IST DAY oF MAY 2019, SERVED
THE FOREGOING CROSS.PETITION FOR RECONSIDERATION, IN CASE NO.
ATL-E-I8-OI, BY E-MAILING AND MAILING A COPY THEREOF, POSTAGE
PREPAID, TO THE FOLLOWING:
ISRAEL RAY
ATLANTA POWER COMPANY
11I40 CHICKEN DINNER RD
CALDWELL ID 83607
ELECTRONIC SERVICE ONLY
ATLANTA WATER ASSOC INC
theamyobri en (4) grnai l. com
d vartce.arrva (a) gmai I . corl
rickandev)rj enkins@ grnail. com
ipdeb(g),rtci.net
ELECTRONIC SERVICE ONLY
ATLANTA LANDOWNER'S ASSOC
by greylock (0wjldbl ue.net
andy. eppe rson (3 gmail. corn
[e-mail]
j gi lles((Dcabl eone.net
ISRAEL RAY
ATLANTA POWER COMPANY
T215 DOLPHIN WAY
FAIRBANKS AK 99709
STEVEN J MEADE
ATLANTA WATER ASSOC INC
PO BOX 1097
BOISE ID 8370I
E-MAIL: snreade(didalaw.conr
STEVEN J MEADE
ATLANTA LANDOWNER'S ASSOC
PO BOX 1097
BOISE ID 8370I
E-MAIL: [e-mail]
ELECTRONIC SERVICE ONLY
ATLANTA LAND OWNER
steve(i)plun pkincrcckranch.conr
-b,4e^^SECRETARY
CERTIFICATE OF SERVICE