HomeMy WebLinkAbout2001625_dh.docDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
BILL EASTLAKE
TONYA CLARK
LYNN ANDERSON
DAVE SCHUNKE
KEITH HESSING
RICK STERLING
TERRI CARLOCK
RANDY LOBB
GENE FADNESS
WORKING FILE
FROM:
DATE:
JUNE 25, 2001 RE: LLP POWER GENERATION’S PETITION FOR DECLARATORY ORDER THAT IT IS NOT SUBJECT TO COMMISSION JURISDICTION, CASE NO. GNR-E-01-01
On June 22, 2001, LLP Power Generation, LLC (LLP) filed a Petition seeking a declaratory Order from the Commission pursuant to Rule 101, IDAPA 31.01.01.101. In particular, LLP requests the Commission determine whether the leasing of diesel-powered locomotive engines located in Idaho to generate power for the regional wholesale market would subject LLP to the Commission’s regulatory jurisdiction. Given the pressing need for additional generation in the western United States, LLP requests that the Commission process this request expeditiously under Modified Procedure.
THE PETITION
As set out in the Petition, LLP is a limited liability company owned by Locomotive Leasing Partner, which is turn is owned by GATX Capital Corporation and the Electro-Motive Division of the General Motors Corporation. LLP is the owner of diesel-powered railroad locomotives, which it desires to lease to other individuals or entities (lessees). The lessees will, in turn, site the locomotives at various locations in Idaho to generate power for sale in the wholesale market. LLP states that each locomotive is capable of supplying approximately 1.8 MW.
LLP indicates that its sole activity will be the leasing of the equipment to others. Under the terms of the leases, LLP intends to exercise no control over issues such as siting, permitting, interconnection/transmission agreements, or the operation of the locomotives to generate power. Consequently, LLP requests that the Commission find that it would not be a public utility subject to public utility regulations under Title 61. LLP also requests that the declaratory ruling not be limited to a particular transaction or set of facts but be a “general Order determining that this type of activity does not subject the lessor to public utility regulation.” Petition at 2, ¶ 6. If the Commission determines that LLP is subject to public utility regulation, then it requests the Commission indicate what regulatory requirements must be met. Id.
STAFF ANALYSIS AND RECOMMENDATION
Procedural Rule 101 allows the Commission to issue declaratory rulings 31.01.01.101. 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 effective utilities.
Staff believes that it is appropriate to process the Petition under Modified Procedure. Given the need for additional generation in the western United States, Staff also proposes that the Commission find there is good cause to seek comments on less than twenty-one days’ notice. IDAPA 31.01.01.202.02. Accordingly, Staff recommends that persons interested in commenting upon this Petition do so within fourteen days of the service date of the Commission’s Order.
COMMISSION DECISION
Does the Commission wish to process this Petition for a Declaratory Ruling under Modified Procedure?
Does the Commission find there is good cause to expedite this matter by seeking comment within fourteen days?
vld/M:GNR-E-01-01_dh
DECISION MEMORANDUM 3