20221215Reply Comments.pdf

Brad M. Purol
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Attornev for Atlanta Power Comoanv
]"3ORE THE IDAHO PUBLTC UTTLITTES COMMISSION
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ATLAIITA POWER COMPAIIY SE]nvruo
AND CUSTOMER RELATIONS
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CASE NO. ATL.F,-?z,NL
ATLANTA POWft,Ti
REPLY COMMENTS
The Atlanta Power Comoanv (hereinafter "Atlanta Power." *Atlanta" or "the Company'')
hereby submits its Reply Comments in response to Staffs comments flrled in this proceeding on
December 6-2022.
I. INTRODUCTION
Staffs Reply Comments are, understandably, extensive and contain facts and information
dating back to IPUC Case No. ATL-E-22-01 and, to some extent, further back than that. While,
as explained below. Atlanta does not necessartly agree wt*r certain conctusions and statements
contained in those comments. it does understand and appreciates Staffs desire to set forth some
of the history involving Atlanta Power for the purpose of perspective.
lncidentally, the undersigned began representation of Atlanta Power in roughly late July,
2A22, and though a thorough history ofthe reasons that the owner of Atlanta Power. Mr. Israei
Ray, is important to understand. the matter currentlv before the Commission is fbcuscd oii tl;:
ATLANTA POWER REPLY COMMENTS I
proposed sale of the Company to Mr. Gene Haught, an Attanta Power employee, and Mr. Nick
Jones fhereinafter referred to individualty or coltectivety as "buyers")a technical expert and
instructor in design, analysis and functioning of an electric grid and its more esoteric aspects
lsometimes referred to herein as the "buyers,'). As Staffnotes in its comments, Mr. Haught,
who has had considerable experience handling the daily tasks and problem solving of the Atlanta
Power system while living in Atlanta is literally the "boots on the ground'o individual who
handles a multitude oftasks related to the Atlanla power system, as well as his other tasks
helpful to the Atlanta residents. Mr. Jones is highly experienced in the more technical aspects of
an electrical grid and is an instructor at the Northwestem Lineman College near Meridian, Idatro.
As Stafffurther notes in its Comments, the experience and abilities of both these gentlemen will
be of tremendous value to the Company should the proposed sale between Atlanta and the buyers
be approved.
IT. ATLANTA POWER'S POSITION
A. Background
Staffand the Commissioners are, no doubt, well aware ofthe remote and challenging
nature ofAtlanta,Idaho and the many difliculties maintaining an electrical system in some of
Idaho's most extreme weather conditions. While Atlanta s system has had its share of
challenges due to the nature and location of the Company's electric system, Staffnotes that, in
the past several years, the quality of service has improved and customer complaints much
reduced. Atlanta is confident that, given their respective talents, Mr. Gene Haught and Mr. Nick
Jones will improve the system to the greatest, and most feasible extent possible.
B. Specific reply to Staffs Comments
2ATLANTA POWER REPLY COMMENTS
Atlanla poinls out that, during the November 29,2022 pttblic workshop. there were ven
few comments made. Further, to the best of the undersigned's knowledge" no oubirc commenti
were made during the December 13. 2022virttal customer heanng.
Despite Atlanta's alleged failure to comply with Staff requests. whether formai or
informal, Staffultimately proposed approval, subject to conditions and amendments set forth
below, of the three documents (often referred to as the Purchase and Sales Agreement *PSA)
submitted by Atlanta Power, with the invaluable expertise of Mr. ChristopherNunez, acting on
behalf of Atlanta Power and who did the yeoman's work on drafting the three PSA documents
(often referred to as the *PSA"), the undersigned who has handled the IPUC aspect of this case,
and Mr. Peter Richardson, representing Greylock Energy HoJdings LLC and, therefore by
association, Mr. Haught and Mr. Jones, the owners of Greylock. The PSA documents were
timely filed with the Commission, pursuant to Commission Order No. 35465, on August 26,
2022. The documents were signed by Mr. Israel Ray, Mr. Gene Haught and Mr. Nick Jones.
Stafl in its Comments, ultimatety "recommends that the Commission approve the
Ptrrchase Sales Agreement and authorize the transfer of CPCN Certificate Number 300 to the
new owners..." Staffs Comments, frled December 6,2022, conditioned its recommendation for
such approval ofthe sale on six specific requirements (See, StaffComments, p.l5). Atlanta did
not have formal notice or knowledge of these additional six proposed conditions until December
6 That said, Atlanta intends to cooperate to the best of its ability in responding to StafPs
recommended six conditions for Commission approval of the sale of Atlanta to the buyers.
Atlanta does, however, acknowledge that due to the unique comptexity of this particular case, it
took longer than expected to provide some of the discovery requests submitted to Atlanta by
Staff, though some of the requests could simply not be responded to due to lack of data and
3ATLANTA POWER REPLY COMMENTS
information sought. Regardless, Attanta, to the best of its abitity, did provide Supplemental
Responses to Staffs discovery requests by the November 78,2022 deadline imposed by the
Commission in OrderNo. 35594.
Regarding Staff s conditions for recommending approval of the proposed sale of the
Company, only conditions 1-3 apply directly to Aflanta, while conditions 4-6 apply to the
buyers. Staff s proposed conditions:
l. Order the seller [i.e., Atlanta] to amend the PSA to include the contingency plan described in
Order No. 35465;
Response: As Staffis aware, the PSA was a negotiated document that involved
considerable time and back and forth negotiations in order to come to a mutually satisfactory
purchase/sale agreement between Atlanta and buyers. The PSA was physically signed and
executed by Allanta and buyers before il was filed with the Commission on August 26,2022.
Nonetheless, Atlanta intends to cooperate with addressing the Contingency Plan as much as
possible, once it better understands what the plan should contain. Incidentallv. Mr. Gene
Haught's S-year plan, submitted to Staffsome time ago, might address some of the objectives of
such a contingency plan. Though the undersigned has reviewed OrderNo. 36465, it remains
unclear as to the precise expectations the Commission has in this regard and would greatly
appreciate clarification of what the Contingency Plan should entail, whose responsibility it is to
implement the plan, especially in the event that the proposed sale is approved, and any other
guidanc.e that the Commission is willing to provide. Again, it is Atlanta's desire to fully
cooperate to the extent the Commission wishes for clarification or elaboration of this issue.
4ATLANTA POWER REPLY COMMENTS
2. Order the Seller to amend the PSA to provide complete legal descriptions of the lano swar
described in Section 6.4 of the PSA. indicating clear ownershin of the selier and ouver-
Response: Though Staffwas provided with aerial photos of the area initiaiiy orooose:
for a land swap, Atlanta realizes that this is not a precise legal description. The oameo
incurred challenges in finding a surveyor availabte to provide an accurate tegal description of
the land that will be transferred to buyers before the earty snowfall. making such a survey
impossible until well into spring. In addition, the parties have discussed the possibility of a
more expedited process whereby buyers would have a legal right to utilize the property in
question. The possibilit-v of an easemenl or right ofway mi-sht be such a means to expedite
the process. According to Elmore County. however. any transfer of land using these
alternative procedures still requires a legal description. The possibility of a basic written
agreement, pending filing and approval of an easement between the parties that they are
entitled to use of the land necessary for operation of the Atlanta Power system has also been
discussed.
Either way, the undersigned is awaiting a fi.r:rther response from Elmore County regarding
these possibilities. It is certainly seller's desire to ensure that buyers have access to the land
thev need in order to continue runnins. the electric svstem as soon as aDproval of the sale is.
hooefullv. received.
3. Order the Seller to amend the PSA to limitthe monthlv maximum consumption to 4015
kWh at the Seller's residence.
As stated in response to prior recommended conditions, Seller and Buyers executed a
document in August with all parties agreeing upon a 6000 kWh monthly maximum consumption.
As part of the negotiations, Mr. Ray reduced his sale price by approximately $155,000, which
5ATLANTA POWER REPLY COMMENTS
will be credited asainst whalever rates he would othenmise pav. In retttr:- the $6000 kWn was
the quid pro quo for that portion of the PSA negotiations and signed agreement. Again. tvir. xal
cannot unilaterally amend the PSA the buyers asreed rr.
That said, Mr. Ray would appreciate the opportunity to communicate witil San regarorng
an analvsis to better determine v,/tnt his tikelv consumption wilt be per montlr- IncidenallS Mr.
Ray will soon have constructed a second home on his property u/hich will obviously increase
consumption. Again, Atlanta would greatly appreciate the ability to discuss ttris with Staffat its
earliest convenience.
DATED.this l5th day ofDecember 15.2022.
Brad M. Purdy
6ATLANTA POWER REPLY COMMENTS
BRTIFICATE OF SERWCE
.*X,EBY CERTIFYTHAT T HAVE ON THTS 15th DAY OF DECEMBEB-a0Z2.
:=-VED TI{E FOREGOING REPLY COMMENTS OF ATLANTA POWER COMPANY IN.- FiOS. ATL-E-22-01 and NL-E-22-42 BY HAND-DELMRING. EMAILING.
-=i1lOR FAXING A COPY TTIEREOF TO THE FOLLOWING:
CHRIS BI.'RI:
DEPUTY ATIORNEY GENEKAL
Ciris. ourcrn amuc. ros- : .
CHRIS NUT{EZ
Mcananey dc Assocrares
crn(4lmcananev.us
DETFP. RICHARDSON
Pielrardson Adams PLLC
I.. t.'@:rchardsonadams. com
Brad M. psl.rlv
7ATLAI{TA POWER REPLY COMMENTS