20190612Staff Report.pdf

EDWARD J. JEWELL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720.0074
[phone]
IDAHO BAR NO. 10466
RECEIVED
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Street Address for Express Mail:
472W, WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORB THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF ATLANTA POWER COMPANY SERVICE
AND CUSTOMER RELATIONS
CASE NO. ATL.E-18-01
STAFF REPORT
On January 2,2018, Atlanta Power Company ("Atlanta Power" or "Company")
customer, Mary Drake, formally complained to the Commission that Atlanta Power was not
maintaining adequate service as required by ldaho Code $ 6l-302.
On April 4,2019, 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 held on February 19,2019. The Commission ordered the
Company to file verified returns and pay $12,000 for six violations of Idaho Code and $103 in
estimated past due regulatory fees by Aprll26,2019 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 filed a petition for reconsideration.
On May 10,2019, the Commission issued an Order on Reconsideration granting the
Company's petition for reconsideration and conditionally suspending the Company's obligation
to pay the $12,000 portion of the fine. Order No. 34334. The Commission ordered the
Company to pay $280.32 within seven days of the service date of its Order, which represented
the remaining balance the Company owed for its past due regulatory fees from 2076,2017, and
2018, as determined by the Company's gross intrastate operating revenue for those years. Id.
STAFF REPORT JUNE I2,2OI9
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The Commission also ordered the Company to provide current telephone numbers for an
onsite operator and Company management within seven days of the service date of its Order and
to engage in a settlement conference within twenty-one days of the service date of its Order. Id.
The Commission ordered Staff to provide a report within fourteen days of the settlement
conference to apprise the Commission on progress.
On May 17,2019, the Commission received a check in the amount of $280.32 from the
Company for the remaining balance on its past due annual regulatory assessments.
On May 28,2019, the Commission granted the petition to intervene of the Atlanta
Electrical Consumer Co-op, Inc. ("Atlanta Electrical Consumer Co-op" or'oCo-op"). Order No.
34343.
On May 29, 2019, the Company, Commission Staff, and representatives of the Atlanta
Electrical Consumer Co-op engaged in a telephonic settlement conference.
STAFF REPORT
Commission Staff, the Company, and representatives of the Atlanta Electrical Consumer
Co-op engaged in a telephonic settlement conference on May 29,2019 in compliance with Order
No. 34334. At the conference, the Atlanta Electrical Consumer Co-op and the Company
indicated that they have agreed on an individual to appraise the system. The parties stated that
Scott Kaster, in their respective opinions, has the requisite knowledge of electric systems to
adequately perform the task. The parties stated that they have agreed on a price with Mr. Kaster.
There is some disagreement over who will pay Mr. Kaster, but each party stated its willingness
to pay half the agreed upon cost of appraisal. At the time of the settlement conference, both
parties understood that the appraisal was expected to occur no later than June 7th through 9th,
2019.
The Atlanta Electrical Consumer Co-op anticipates having its next board meeting over
the 4th of July weekend. The parties are hopeful that Mr. Kaster will have his appraisal
completed and submitted prior to that weekend, and that the parties will have had an opportunity
to discuss specific terms of a potential deal by that time, including price. Representatives of the
Co-op hope to be able to present an offer to the board over the 4th of July weekend for rejection
or approval. Staff reminded the parties that any transaction for the assets of an electrical system
in the state of Idaho must be approved by the Commission under ldaho Code $ 61-328. The
parties agreed to hold another settlement conference following the appraisal and Co-op board
2STAFF REPORT JUNE I2,2OI9
meeting. The parties anticipate that mid-July will be an appropriate time to hold such
conference.
At the settlement conference the Company agreed to allow Staff to provide the
Company's revenue statements from 20 I 6, 2017 , and 201 8 to the Co-op. The parties believe that
these statements will assist the Co-op in reviewing the financial viability of the Company, and
provide requisite information for grant applications the Co-op is considering pursuing. The
Company also provided some information regarding other monthly expenses.
Staff notes that the Company timely paid the past due amount for its gross operating
revenue assessment, made itself available for a settlement conference, offered to pay for the
appraisal of the system, and agreed to provide financial information to the Co-op. Staff notes
that the Co-op intervened in the case in order to attempt to reach a settlement within the
parameters of the case, has offered to split the costs of the appraisal, made itself available for the
settlement conference, and made reasonable requests for information and a timeline going
forward. Overall, Staff observes that both the Company and the Co-op are working in good faith
to determine whether a transaction is in each party's respective interests.
STAFF RECOMMENDATION
Staff recommends the Commission continue the reconsideration period and order the
parties to have another settlement conference on or prior to July 18,2019.
tar*day ofJune,2019RESPECTFULLY submitted this
Edward J
Deputy General
Umisc/comments/atle I 8. I ej staff report2
STAFF REPORT JLINE I2,2OI9
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS I2TH DAY OF JUNE 2019,
SERVED THE FOREGOING STAFF REPORT, IN CASE NO. ATL-E-18-01, BY
E-MAILING AND MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
ISRAEL RAY
ATLANTA POWER COMPANY
I I I40 CHICKEN DINNER RD
CALDWELL ID 83607
ELECTRONIC SERVICE ONLY
ATLANTA WATER ASSOC INC
theamyo bri e n (@. grnai l. coni
d vance.awa(0 sn:)ai I.c0m
ric,kanclevyi enkinsill.)urnail.com
jpdeb@)rtci.net
ELECTRONIC SERVICE ONLY
ATLANTA LANDOWNER'S ASSOC
bv sreyl ock (/ilrvi Iclblue. ne t
andy. c'pperson(D emai l.corn
[e-mail]
igdb.s(Ocableone.tq!
ISRAEL RAY
ATLANTA POWER COMPANY
1275 DOLPHIN WAY
FAIRBANKS AK 99709
STEVEN J MEADE
ATLANTA WATER ASSOC INC
PO BOX 1097
BOISE ID 8370I
E-MAIL: smezrde(ii)idalaw.com
STEVEN J MEADE
ATLANTA LANDOWNER'S ASSOC
PO BOX 1097
BOISE ID 8370I
E-MAIL: snteade@idalau,.com
ELECTRONIC SERVICE ONLY
ATLANTA LAND OWNER
stcve(ipr-r rnlrki ncrcckranch. com
ELECTRONIC SERVICE ONLY
ATLANTA ELECTRAL CONSUMER
CO-OP INC
PDFD24 7(d),vahoo. corn
lo-v0nelnartl nezQ),cmall.com
[e-mail]
i gi lles(?cableone.net
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YSECRETAR
CERTIFICATE OF SERVICE