20050711Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
CO MMISSI ON SECRET AR Y
COMMISSION STAFF
FROM:DON HOWELL
DATE:JULY 8, 2005
SUBJECT:THE APPLICATION OF IDAHO POWER COMP ANY AND SUN
VALLEY COMPANY SEEKING APPROVAL TO SELL AND
TRANSFER CERTAIN UTILITY PROPERTY TO SUN VALLEY, CASE
NO. IPC-05-
On May 2, 2005 , Idaho Power Company and Sinclair Oil dba Sun Valley Company
Sun Valley ) filed an Application requesting that the Commission approve the sale and transfer
of certain utility property to Sun Valley. Pursuant to Idaho Code 9 61-328 , the parties request
that the Commission approve the sale and transfer of the property. The parties request that the
Commission process their Application by Modified Procedure.
THE APPLICATION
On May 2, 2005, Idaho Power and Sun Valley executed a Memorandum of
Understanding (MOU) regarding the proposed sale and transfer of property. As set out in the
MOU, Idaho Power proposes to transfer its distribution facilities which serve portions of the Sun
Valley Resort including the Lodge, the Inn, stores in the mall area, and Moritz Hospital.
Transfer of the utility facilities will enable Sun Valley to more efficiently operate and manage its
facilities within its resort complex. The parties have agreed that Sun Valley will pay the sum of
$135 533 to Idaho Power. The Application represents that this is a revenue neutral transaction
for Idaho Power.
The Application further states that Sun Valley has contacted all the tenants in the Sun
Valley Mall that are currently served directly by Idaho Power. The parties represent that the
tenants do not object to the transfer and understand that they will be billed for the cost of their
DECISION MEMORANDUM
electric service in their leases with Sun Valley Company. Sun Valley also agreed to reimburse
Idaho Power for the costs of reconfiguring the meters and other distribution facilities.
ST AFF RECOMMENDATION
Idaho Code 9 61-328 prohibits any electric utility from selling any distribution
facility without the Commission s authorization. Based upon the request of the parties, Staff
believes it is appropriate to process this Application under Modified Procedure.
COMMISSION DECISION
Does the Commission wish to process this Application under Modified Procedure?
Don Howell
bls/M:IPCEO516 dh
DECISION MEMORANDUM