HomeMy WebLinkAbout20070425notice_of_petition_order_no_30308.pdfOffice of the Secretary
Service Date
April 25, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
BONNEVILLE POWER ADMINISTRATION
FOR A DECLARATORY ORDER
DISCLAIMING JURISDICTION NOTICE OF PETITION
CASE NO. BPA-07-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30308
On April 6, 2007, Bonneville Power Administration (BPA) petitioned the
Commission for a declaratory order disclaiming Commission jurisdiction and regulation of the
Owner Lessor in a proposed lease financing arrangement for the construction of various electric
transmission facilities within the State of Idaho. With this Order the Commission authorizes the
use of Modified Procedure and establishes a deadline for interested persons to submit
comments.
NOTICE OF PETITION
YOU ARE HEREBY NOTIFIED that BPA's Petition states that it is a federal power
marketing administration within the U.S. Department of Energy that markets wholesale electrical
power and operates transmission facilities in the West and Pacific Northwest. According to the
Petition, BP A proposes to enter into a lease financing arrangement under which it would acquire
construct, and/or install various, and as of yet undetermined, transmission facilities (Facilities)
for the purposes of enhancing transmission grid reliability, ensuring compliance with mandatory
reliability standards, enabling the integration of new generation, and managing grid congestion.
Some of the Facilities will be located in Idaho and according to the Petition, all Facilities will be
used exclusively by BP A to provide interstate transmission service.
YOU ARE FURTHER NOTIFIED that as stated in the Petition, the Facilities will be
financed by a special purpose entity (SPE) that is the Owner Lessor. The Facilities will be
owned by the Owner Lessor, SPE, Northwest Infrastructure Financing Corporation II, which will
be formed expressly for the purpose of arranging for the financing of the Facilities. All of the
capital stock of the Owner Lessor, SPE, will be owned by lH Holdings, acting solely as trustee
under a trust agreement between l.R. Management Corporation (JHM) as grantor, and lH
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30308
Holdings Corporation (JHH) as trustee. All of the capital stock of JHM and JHH will be owned
by the 1960 Trust, an independent charitable support organization operated for the benefit
Harvard University. The Owner Lessor SPE will not engage in any business other than
arranging for the acquisition and financing of the Facilities.
YOU ARE FURTHER NOTIFIED that the SPE will finance the construction of the
Facilities through one or more loans. The SPE's sole source of funds to repay the loans will be
payments made by BP A under the lease of the Facilities to BP A. The SPE will lease its
undivided interest in each of the Facilities to BP A at the time each such Facility is acquired,
installed, and/or constructed. The term of the lease will be seven years from the date that the
master lease and the first lease commitment are executed. BP A will agree in the lease to operate
and maintain the Facilities in the same manner as it operates and maintains its other transmission
facilities. The SPE will have no operating responsibilities or control rights with respect to the
Facilities. A draft of the lease agreement was filed with the Petition. BP A requests the
Commission issue a declaratory order disclaiming jurisdiction over the Owner Lessor SPE in the
proposed lease financing for the construction of the transmission facilities.
YOU ARE FURTHER NOTIFIED that the Petition, supporting workpapers
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Petition and
testimonies are also available on the Commission s Website at www.puc.idaho.gov under "File
Room.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that Procedural Rules 101 and 102 provide for
the issuance of declaratory rulings by the Commission. IDAPA 31.01.01.101 , 31.01.01.102.
Pursuant to Rule 101 , persons seeking such a declaratory ruling must state the ruling that the
petitioner seeks, set out the factual allegations, and indicate the statute or other controlling law
pertaining to the petition. IDAPA 31.01.01.101.02. Rule 102 provides that the notice of the
petition for a declaratory ruling will be issued to all affected utilities. IDAP A 31.01.01.102.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in Case No. BPA-07-01. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case and that issues
raised by the Company s filing may be processed under Modified Procedure, i., by written
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30308
submission rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAPA 01.01.01.204.
NOTICE OF COMMENT/PROTEST DEADLINE
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments
or protests with respect to the Petition and the Commission s use of Modified Procedure in Case
No. BPA-07-01 is 21 days from service date of this Order. Persons desiring a hearing must
specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning this case
should be mailed to the Commission and to the Company at the addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30308
Randall C. Budge
Racine, Olson, Nye, Budge & Bailey
PO Box 1391
20 I E. Center Street
Pocatello, ID 83204-1391
E-mail: rcb~racinelawnet
Robb F. Roberts
Bonneville Power Administration
Office of General Counsel
Routing LC- 7
905 Northeast II th Avenue
PO Box 3621
Portland, OR 97232
E-mail: rfroberts~bpa.gov
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Company at the addresses listed above.
ORDER
IT IS HEREBY ORDERED that this case be processed by Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use
Modified Procedure should do so no later than 21 days from the service date ofthis Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this d,s-fl...
day of April 2007.
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MARSHA H. SMITH, COMMISSIONER
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1\MI S SIONER
ATTEST:
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; D. Jewe
Cdmmission Secretary
O:BPA-07-01 dw
NOTICE OF PETITION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30308