20061027Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:OCTOBER 24, 2006
SUBJECT:CASE NO. IPC-06-
IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OF AN
AGREEMENT WITH A VIMOR, LLC FOR TRANSMISSION AND
SUBSTATION FACILITIES
On September 27 , 2006, Idaho Power Company filed an Application requesting
Commission approval of an agreement between the Company and Avimor, LLC that provides for
the construction of transmission and substation facilities for a residential subdivision proposed
by Avimor. Avimor s planned subdivision is located in an area where Idaho Power does not
have adequate facilities to accommodate the project. The agreement with A vimor provides for
A vimor to pay Idaho Power the amount of $4.3 million to construct the facilities. The payments
will be made in three installments, the first of which has already been paid. The agreement
provides that Idaho Power will own, operate and maintain the facilities that are constructed
pursuant to the agreement.
The Company requested, and Staff recommends, that its Application be processed by
Modified Procedure.
CO MMISSI 0 N D ECISI 0 N
Should the Application of Idaho Power Company for approval of an agreement
between the Company and A vimor for the construction of transmission and substation facilities
be processed by Modified Procedure?
Weldon Stutzman
blsfM:IPC-O6-23 ws