20050802order no 29837 notice of application.pdf

Office of the Secretary
Service Date
August 2, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF IDAHO POWER
COMP ANY AND SINCLAIR OIL
CORPORA TON FOR THE SALE AND
TRANSFER OF CERTAIN UTILITY OWNED
FA CILITIES
CASE NO. IPC-O5-
NOTICE OF APPLICATION AND
WAIVER REQUEST
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 29837
On May 2, 2005, Idaho Power Company and Sinclair Oil Corporation dba Sun
Valley Company ("Sun Valley ) filed a Joint Application requesting that the Commission
approve the sale and transfer of certain utility distribution property to Sun Valley. The
distribution facilities subject to the proposed transfer are located on the grounds of the Sun
Valley Resort. Idaho Power would also remove its existing service meters for those customers
directly billed by the utility.
On July 13 , 2005, the Applicants amended their Application. In particular, the
parties requested that the Commission grant Idaho Power a waiver of the Company s Master-
Metering tariff found in Section 4 of Rule E. Idaho Power s Master-Metering tariff is nearly
identical to the Commission s Master-Metering Rule 103. IDAPA 31.26.01.103. Rule 103
prohibits utilities from removing individual service meters in shopping centers where the tenants
control their own electric space heating, water heating, or air-conditioning appliances.
The parties requested that their Joint Application and the waiver request be processed
under Modified Procedure. Based on our review of the pleadings, we find that this matter should
be processed under Modified Procedure.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Idaho Power and Sun Valley executed a
Memorandum of Understanding (MOU) regarding the proposed sale and transfer of utility
distribution property. As set out in the MOU, Idaho Power proposes to sell and transfer its
NOTICE OF APPLICATION AND
WAIVER REQUEST
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29837
distribution facilities that serve portions of the Sun Valley Resort including the Lodge, the Inn
stores in the mall area, the skating rinks, the Opera House, and Moritz Hospital.
YOU ARE FURTHER NOTIFIED that the parties assert that transfer of the facilities
to Sun Valley will enable Sun Valley to more efficiently operate and manage its facilities within
the resort complex. The parties have agreed that Sun Valley will pay the sum of $135,533 to
Idaho Power. Application at 2. This amount includes Idaho Power s costs of removing the
meters and reconfiguring the system (estimated at $7 500). If the actual reconfiguring costs are
lower or higher, the parties have agreed to adjust the transaction price accordingly. MOU at ~ 3.
They represent that this transaction will be revenue neutral to Idaho Power (there is neither a
gain nor loss on the sale). The rates of other customers will not be affected by the sale.
Application at 2.
YOU ARE FURTHER NOTIFIED that several tenants in the Sun Valley Mall
currently receive metered electric service directly from Idaho Power. Once the meters are
removed and the service lines reconfigured, electric service to the tenants will be provided under
the master-meter arrangement between Idaho Power and Sun Valley. Sun Valley intends to
recover the cost of electric service provided to tenants in the Sun Valley mall be means of a
monthly charge included as part of the lease arrangement between Sun Valley and the
individual tenants." Amended Application at 2-3. Sun Valley stated that it has advised all of its
affected tenants of the proposed transaction. MOU at ~ 5.
THE WAIVER REQUEST
YOU ARE FURTHER NOTIFIED that both the utility tariffs and the
Commission s Master-Metering Rule 103 prohibit the conversion of individual tenant meters to
master-meters. In particular Rule 103 provides that no unit contained within "commercial
buildings and shopping centers shall be master-metered for electric service after July 1 , 1980, if
the (tenant) units . contain an electric space heating, water heating, or air-conditioning
(appliance) that is not centrally controlled and over which the unit's tenants individually control
electric usage.IDAPA 31.26.01.103. Given this prohibition against new master-metered
arrangements, the parties request that the Commission grant a waiver of the Company s tariff
and Rule 103. MOU at ~ 6. To comply with the spirit of the Master-Metering Rule, Sun Valley
asserts that within 60 days of the transfer, it "will retrofit the individual thermostats for each of
NOTICE OF APPLICATION AND
WAIVER REQUEST
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29837
its tenants" so that each thermostat will be centrally controlled by Sun Valley. Id. ~ 5(a). Once
the retrofits are completed, Sun Valley will provide the Commission with a certification that the
retrofits have been completed and that Sun Valley personnel centrally control the space heating
and air-conditioning appliances for the tenants in the Sun Valley Mall.
YOU ARE FURTHER NOTIFIED that Idaho Code ~ 61-328 prohibits Idaho Power
from selling any distributing facility without the written authorization of the Commission.
Before authorizing such a transaction, the Commission must find that: (1) the transaction is
consistent with the public interest; (2) the transaction will not cause the costs of or rates for
supplying electricity to increase; and (3) Sun Valley has the intent and financial ability to operate
and maintain the property.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure, ID AP A 31. 01. 01.201 through .204. 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 any person desiring to state a position on the
Joint Application or waiver request may file a written comment in support or opposition with the
Commission within twenty-one (21) days from the service date of this Notice. The comment
must contain a statement of reasons supporting the comment. Persons desiring a hearing must
specifically request a hearing in their written comments. Written comments concerning this
matter shall be mailed to the Commission and the Applicants at the addresses reflected below:
NOTICE OF APPLICATION AND
WAIVER REQUEST
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29837
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Barton L. Kline, Senior Attorney
Idaho Power Company
PO Box 70
Boise, ID 83707-0070
Mail: bkline~idahopower.com
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Dean 1. Miller
McDevitt & Miller, LLP
PO Box 2564
Boise, ID 83701-2564
E-mail: joe~mcdevitt-miller.com
Attorneys for Sun Valley
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 home page 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 Applicants at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider the matters on their merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Joint Application and the waiver request
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices. The Joint Application and waiver request are also
available on the Commission s Website at www.puc.idaho.gov under the "File Room" icon and
then "Electric Cases.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code ~ 61-328 and Rule 103 , IDAPA 31.26.01.103. The Commission may enter any final
Order consistent with its authority under Title 61.
NOTICE OF APPLICATION AND
WAIVER REQUEST
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29837
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that persons desiring to submit written comments
regarding the Joint Application or the request to waive the master-meter prohibition found in
Rule 103 (IDAPA 31.26.01.103) may do so within twenty-one (21) days of the service date of
this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J.. JJ.
day of August 2005.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~In~Je D. Jewell
mission Secretary
bls/O:IPC-O5-16 dh
NOTICE OF APPLICATION AND
WAIVER REQUEST
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29837