HomeMy WebLinkAbout20091110Application.pdfBARTON L. KLINE
Lead Counsel
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*SIDA~POR~
An IDACORP Company
November 10, 2009
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-09-31
IN THE MATTER OF THE APPLICA TlON OF IDAHO POWER COMPANY
FOR AUTHORITY TO SELL TO RAFT RIVER RURAL ELECTRIC
COOPERATIVE, INC., CERTAIN ELECTRIC DISTRIBUTION FACILITIES
CURRENTL Y OWNED BY IDAHO POWER COMPANY
Dear Ms. Jewell:
Enclosed please find for filing an original and seven (7) copies of Idaho Power
Company's Application in the above matter.
Very truly yours,QJtL
Barton L. Kline
BLK:csb
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
BARTON L. KLINE (ISB No. 1526)
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
P.O. Box 70
1221 West Idaho Street
Boise, Idaho 83707
Telephone: (208) 388-2682
Facsimile: (208) 388-6936
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InordstromCãidahopower.com
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
RECEI\'
in09 NOV \ 0 PM 3: 59
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO SELL TO RAFT RIVER
RURAL ELECTRIC COOPERATIVE, INC.,
CERTAIN ELECTRIC DISTRIBUTION
FACILITIES CURRENTLY OWNED BY
IDAHO POWER COMPANY.
)
) CASE NO. IPC-E-09-31
)
) APPLICATION
)
)
)
)
COMES NOW, Idaho Power Company ("Idaho Powet' or "Company") and pursuant
to Idaho Code § 61-328 and RP 52, hereby requests that the Commission issue its Order
approving the sale and assignment by Idaho Power to Raft River Rural Electric
Cooperative, Inc. ("Raft Rivet') of certain electrical distribution facilties and appurtenant
rights-of-way located in southern Twin Falls County. In support of this Application, Idaho
Power hereby states as follows:
APPLICATION - 1
i. DESCRIPTION OF THE TRANSACTION
.
1 . Idaho Power is an electric utilty subject to the regulation of the Idaho Public
Utilties Commission ("Commission"). Raft River is a non-profit cooperative electrical
corporation, incorporated under the laws of the state of Idaho, providing retail electric
service to its members in the states of Idaho, Utah, and Nevada. Raft River is based in
Malta, in Cassia County, Idaho. Raft River serves customers in Idaho, Utah, and Nevada.
Raft River is not subject to regulation by the Commission.
2. On November 14,2000, Idaho Power and Raft River filed a JointApplication
requesting Commission approval for the sale to Raft River of certain Idaho Power electrical
distribution facilties in southern Owyhee County, Idaho. The Application requested
authority to sell the distribution facilities and other electric assets at net book cost. The
total net value for the facilities located in Idaho that were sold to Raft River was
approximately $80,000.00. In Order No. 28631, Case No. IPC-E-00-17. The Commission
approved the Application on February 1 , 2001. At the time of the sale, Raft River chose not
to purchase all of the line running from the Border substation to the Raft River service
territory. Raft River opted to purchase only that portion of the line located in the state of
Nevada. The Company refers to this particular line in its books and records as the "Border
011 Feeder." Since the sale was closed, Idaho Power has been operating and maintaining
the Idaho portion of the line. This line is used solely to serve Raft River and is classified as
a dedicated distribution primary facilty. The wholesale transportation of energy across the
Border 011 Feeder to Raft River is subject to FERC jurisdiction. In 2001, Idaho Power
established a wholesale Distribution Primary Rate which assigns users of Distribution
Primary a load ratio share of Distribution Primary facilty costs. Idaho Power's average
APPLICATION - 2
feeder length is 29 miles; consequently, the charges assigned to the Raft River in the
FERC jurisdiction significantly exceed the costs associated with this dedicated feeder. To
help restore a reasonable cost causation balance for Raft River, Idaho Power has agreed
to sell the remaining 1.5 miles of the Border 011 Feeder, which is the portion of the feeder
running from the Idaho/Nevada border to the Border substation located in Idaho. The
purchase price to be paid by Raft River wil be based on the same valuation as before,
which is the net book cost as valued on Idaho Power's books and records immediately
prior to the closing date adjusted for income tax impacts. Idaho Power estimates that the
sale price will be approximately $72,000.00, including a tax gross-up. A map showing the
location of the line segment and a brief description of the equipment to be sold is enclosed
as Attachment NO.1.
3. The assets being transferred by Idaho Power are distribution facilties,
including appurtenant right-of-way permits. No generation facilties, bulk transmission
facilties, or hydroelectric water rights are being sold or transferred to Raft River.
4. Idaho Power does not use the 1.5 miles of line being sold to Raft River to
serve any retail customers.
II. NOTICES
5. Communications with reference to this Application should be sent to the
following:
Idaho Power Company
Barton L. Kline
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
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Raft River
Jerry R. Rigby
Rigby, Andrus & Rigby, Chartered
P.O. Box 250
25 North Second East
Rexburg, Idaho 83440
and and
APPLICATION - 3
John R. Gale
Vice President, Regulatory Affairs
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
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Heber Carpenter
General Manager
Raft River Rural Electric
Cooperative, Inc.
P.O. Box 617
Malta, Idaho 83342
II. PROCEDURAL
6. Idaho Power hereby requests that this case be processed on modified
procedure. Because of the small size of this transaction and the fact that none of Idaho
Powets retail customers receive service off of the portion of the Border 011 Feeder to be
transferred to Raft River, modified procedure is appropriate.
iv. CONCLUSION
7. Idaho Power respectfully requests that the Commission issue its Order,
consistent with Idaho Code § 61-328 and RP 52, (1) approving Idaho Power's sale of the
assets described herein; and (2) finding that the sale of the asset is consistent with the
public interest; and (3) finding that the costs of and rates of existing electric service in the
state of Idaho wil not be increased by reason of such transaction; and (4) that Raft River
has the bona fide intent and financial abilty to operate and maintain the transferred assets
in the public service; and (5) finding that because no hydropower water rights wil be
conveyed or assigned, a review by the Department of Water Resources under § 42-
1701 (6) Idaho Code is not required.
II
II
II
/I
/I
APPLICATION - 4
DATED this 10th day of November 2009.
C#16L
BARTON L. KLINE
Attorney for Idaho Power Company
VERIFICATION
STATE OF IDAHO)
) ss.County of Ada )
BARTON L. KLINE, being duly sworn, deposes and states that he is an attorney for
Idaho Power Company, that he has read the foregoing Application and knows the contents
thereof, and that the same are true to the best of his knowledge and belief.
(1tL
BARTON L. KLINE
SUBSCRIBED AND SWORN TO before me, a notary public of the state of Idaho,
this 10th day of November 2009.
~~
NOTARY PUBLIC FOR IDAHO
Residing at Boise, Idaho
My commission expires: 02/04/2015
APPLICATION - 5
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-09-31
IDAHO POWER COMPANY
ATTACHMENT NO.1
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The power line that is authorized under BLM grant 101-20969 wil be partially assigned to Raft River
Electric Co-op. The portion from the Point of Beginning to Point A wil be removed from the grant and
authorized separately to Raft River. The portion from Point A to the Point of Terminus will remain in 101-
20969, and Raft River wil acquire their own BLM grant for that portion.
A strip of land twenty (20) feet wide, being ten (10) feet on each side of a centeríine and located in
Lots 3 and 7, Section 35;
SEJ'SWJ', WYiWYi, Section 26;
SWJ'SWJ', Section 23
SEJ'SEJ', Section 22
All in Township 16 South, Range 15 East, B.M., Twin Falls County, Idaho.
Said centerline is more particularly described as follows:
Commencing at a brass cap marking the Southwest corner of Section 35, thence South 89°10'35" East
1357.09 feet to the REAL POINT OF BEGINNING;
Thence North 01°25'39' West 183.60 feet;
Thence North 03°32'38" West 310.39 feet;
Thence North 05°16'03" West 325.83 feet;
Thence North 07°26'22" West 334.76 feet;
Thence North 09°24'22" West 363.54 feet;
Thence North 11°18'00" West 291.94 feet;
Thence North 11°59'56" West 321.70 feet;
Thence North 14°04'03" West 2943.95 feet;
Thence North 12°40'30" West 282.99 feet;
Thence North Or40'46" West 281.82 feet;
Thence North Or27'07" West 282.33 feet;
Thence North 01°16'43" West 1298.15 feet to Point A;
Thence North 88°04'25" West 250.00 feet
Thence North 50 feet to the Point of Terminus.
This Description checked by ~.
\
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Border 011 Feeder
The facility to be transferred includes the conductor from the Border Substation fence to the
Idaho-Nevada Border, approximately:
. 30,000 feet of 795 kcml and 336 kcml aluminum conductor;
. 30 poles and crossarms;
. 102 34.5 kV insulators; and
. 3 cone Anchors.
Border 011 Feeder jointly uses 4 poles near the Border substation with Border 012 Feeder, which
Idaho Power wil retain. Idaho Power wil continue to own and maintain these four poles and
associated crossarms. The parties agree that any improvements in these poles wil be borne by
the requesting party.