20111021IPC Report On Conversion of Facilities.pdf

DONOVAN E. WALKER
Lead Counsel
dwalkerØlidahopower.com
a;IDA~POR~
An IDACORP Company
October 20,2011
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-04-04
Idaho Power Company v. City of Eagle, Idaho - Report on Conversion of
Underground Facilties in City of Eagle
Dear Ms. Jewell:
Enclosed please find a copy Of a Report on Conversion of Underground Facilities
in City of Eagle. Please file the enclosed Report in the above-indicated case file.
?¡;~
Donovan E. Walker
DEW:csb
Enclosure
cc: Donald L. Howell, II, IPUC (w/encl.)
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, to 83707
(Ç(QrPW
ø_
An IDACORP Company
tDAHO POWER COMPANY
P.O. BOX 70
BOISE, IDAHO 83707
Mr. Donald L. Howell
Lead Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720
October 5, 2011
Re: Report on Conversion of Underground Facilities in City of Eagle
Case No. IPC-E-04-04
Dear Mr. Howell:
On November 19, 2004, the Idaho Public Utilities Commssion ("Commission")
issued Order No. 29634 in the above referenced case, approving a Settlement Stipulation
between Idaho Power Company ("Company") and the City of Eagle ("City) regarding
the Company's plans to install a new 138 kV transmission line withn the Eagle city
limits. The Settlement Stipulation identified an approved route for the transmission line
and specified the types of power pole strctues to be used for the line. The Settlement
Stipulation also provided for the bural of cerain distrbution line facilities within the
City, to be fuded through an increase in Idaho Power's franchise fee payments to the
City from 1% to 3% through December 31,2010. The City, by Ordinance No. 514
passed and approved on May 10, 2005, instituted the 3% franchise fee to be collected and
expended in accordance with the Settlement Stipulation, to remain in place until
December 31, 2010. This letter provides a summar of the distrbution undergrounding
work perormed by the Company under the Settlement Stipulation, and also addresses the
balance of franchise fees remaining in the City's power line relocation fud.
Two signficant power line bural projects were completed in Eagle with the
franchise fee fuding provided though the Settlement Stipulation. The first project was
designated in the Settlement Stipulation and involved the bural of the overhead
distrbution line located along the east side of Eagle Road. Ths power line bural
allowed the Company to decrease the height of the new transmission line being installed
along the east side of Eagle Road, and reduced the number of wires and cables attached
to the new line. The Eagle Road relocation project was completed in 2005 at an actual
cost of $269,378. This amount was paid by the City from its quarerly franchise fee
revenues.
(00063144.DOC; 1)
The second power line bural project conducted with franchise fee revenues under
the Settlement Stipulation involved undergrounding an existing distrbution line located
on the north side of Floating Feather Road, beteen Eagle Road and Edgewood Lane.
Ths project was identified in connection with an Ada County Highway Distrct road
widening project along Floating Feather Road. The road widenng project required the
relocation of the Company's overhead distrbution line, and the City took the opportty
to have the line bured at a reduced cost, since the line was already being moved. The
Floating Feather Road relocation project was completed in 2008 at an actual cost of
$670,241. This amount was also paid by the City from its quarerly franchise fee
revenues.
Attached as Exhbit A is a spreadsheet showing the franchise fee payments from
the Company to the City each quarer from 2005 though 2010. The first column shows
the total 3% franchise fee paid to the City each quaer and the second colum shows the
2% franchise fee eararked for power line bural projects under the Settlement
Stipulation. The third and fourth colums show how the 2% franchise fee was applied
each quarer to pay the cost of the power line bural projects, including interest. The
Eagle franchise fee was retued to the original 1% level effective Januar 1, 2011, as
contemplated in the Settlement Stipulation.
Colum E of the spreadsheet shows the curent balance remaining in the franchise
fee undergrounding fud of $255,568.35. Ths amount represents the 2% franchise fee
payments received by the City that have not been applied to power line burial projects.
The City and Company have discussed possible uses of the remaining $255,568.35 for
undergrounding projects in Eagle, but have not identified wortwhile projects that could
be funded at this leveL. In the absence of such projects, the City has indicated a desire to
transfer the $255,568.35 balance to its general account to fud ongoing city serices.
Idaho Power is supportive of ths proposal since two significant power line bural projects
have already been completed with the franchise fee fuds, and there is no additional
bural project identified for the remaining fuds.
Because the Settlement Stipulation approved by the Commssion specifically
states that the temporary increase in the franchise fee be used to pay the cost of burng
the distrbution line on Eagle Road, and to defray the cost of buryng additional Idaho
Power distribution lines within the City, Idaho Power and the City of Eagle are
requesting acknowledgment from the Commission for the City's proposed transfer of the
remaining $ 255,568.35 of franchise fees to the City's general account. Since the
Commission approved the Settlement Stipulation and the franchise fee arangement
contained therein, the Company and City believe it would be appropriate to receive the
Commission's acknowledgement of the proposed disposition of the remaining franchise
fee fuds.
Please feel free to contact Blake Watson, Communty Relations Representative of
Idaho Power, at 388-2413, or Sharon Bergman, Eagle City Clerk, at 939-6813, if you
have any questions relating to the power line bural projects and franchise fee payments
described above.
(00063144.DOC; 1)
Sincerely,
IJ.,
ayor Jim Reynolds
(~((fEage
Ulf1~
Waren Kline
Vice President of
Customer Operations
Idaho Power Company
(00063144.DOC; 1)
EXHIBIT A
Franchise Fees Cash collected for CIAC/Prepaid City of Eagle
collected construction funding Construction Interest reserve
Q12005 55,203.64 36,804.27 31,672.89 5,131.38
Q22005 49,423.53 32,950.67 27,741.14 5,209.53
Q32005 86,755.48 57,839.88 53,545.74 4,294.14
Q42005 59,658.87 39,774.57 38,750.92 1,023.65
Q12006 66,842.72 44,564.04 42,095.87 2,468.17
Q22006 59,394.66 39,598.42 37,914.82 1,683.60
Q32006 82,905.42 55,273.04 54,254.69 1,018.35
Q42006 55,578.37 37,054.10 36,839.21 214.89
Q12007 59,478.16 39,654.09 39,654.09 0.00
Q22007 54,854.38 36,571.42 -93,090.69 0.00 129,662.11
Q32007 98,638.32 0.00 0.00 0.00 65,762.17
Q42007 64,515.77 0.00 0.00 0.00 43,012.66
Q12008 0.00 238,436.94 0.00 0.00 -238,436.94
Q12008 70,500.19 47,002.48 40,013.04 6,989.44
Q22008 65,561.84 43,710.08 39,225.99 4,484.09
Q32008 111,030.33 74,023.92 70,536.94 3,486.98
Q42008 75,348.27 50,234.69 48,741.24 1,493.45
Q12009 81,250.04 54,169.40 54,169.40 0.00
Q22009 75,243.23 50,164.66 50,164.66 0.00
Q32009 125,646.96 83,768.83 83,768.83 0.00
Q42009 88,809.10 59,209.03 59,209.03 0.00
Q12010 88,039.38 58,695.85 -14,024.99 0.00 72,720.84
Q22010 75,777.95 0.00 0.00 0.00 50,521.16
Q32010 115,667.35 0.00 0.00 0.00 77,115.42
Q42010 82,812.24 0.00 0.00 0.00 55,210.92
12/31/10 balance 255,568.35