HomeMy WebLinkAbout20120518Build Idaho Brief.pdf(D
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J. Frederick Mack, ISB # 1428
Scott D. Hess, ISB # 2897
HOLLAND & HART LLP
Suite 1400, U.S. Bank Plaza
101 South Capitol Boulevard
P.O. Box 2527
Boise, Idaho 83701-2527
Telephone: (208) 342-5000
Facsimile: (208) 343-8869
fmack@hollandhart. corn
Attorneys for Build Idaho Inc.
RECEIVED
2012 MAY 18 AMII:27
DAO P(0-J.—
UTILiTIES COMMISSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR AUTHORITY TO
MODIFY ITS RULE H LINE
EXTENSION TARIFF RELATED TO
NEW SERVICE ATTACHMENTS
AND DISTRIBUTION LINE
INSTALLATIONS
CASE NO. IPC-E-08-22
BUILD IDAHO INC'S BRIEF
IN RESPONSE TO ORDER NO.
32532
Comes Now Build Idaho Inc. (hereinafter "Build Idaho"), by and through its attorneys of
record, Holland & Hart LLP and submits this Brief in response to the Commission's Order No.
32532 ("Order").
Pursuant to the Order, the Commission requested that the parties submit evidence and
briefing on the issue "whether a third party may request relocation of Idaho Power's facilities
that are located in a public roadway from Idaho Power." Build Idaho joins in and supports the
positions asserted by Ada County Highway District ("ACHD") in any briefs and accompanying
Affidavits filed with the Commission's Order.
BUILD IDAHO INC'S BRIEF IN RESPONSE TO ORDER NO. 32532 -1
The Commission's request demonstrates that the Commission is focused on the public
policy issue rather than complying with Idaho Code 61-629, which clearly requires that the
Commission is to enter an order to meet those objections of the Idaho Supreme Court's decision
in ACHD v. IPUC, --Idaho--, 253 P.3d 678, 682 (2012) ("Decision"). Specifically, the Court
held: (1) "We hold that the provisions of Section 10 discussed above exceed the authority of
IPUC. Therefore, we set aside Section 10. I.C. Section 61-629." (2) "Although the legislature has
the authority to order public highway agencies to use their best efforts to minimize the cost of
relocating utility facilities, IPUC does not have that authority. We therefore set aside Section 11.
I.C. Section 61-629. (3) "We set aside Sections 10 and 11 of the amendments to Rule H
approved in IPUC Order No. 30955." Id. at 683. The requirement of Idaho Code 61-629 is
simple and the Commission post-Decision proceedings and Orders fail to enter an order
consistent with the Court's clearly noted objections and instructions. Instead, the Commission is
capitalizing on the Idaho Code 61-629 process as a fresh opportunity to take a second shot at
drafting an order to legislate its public policy objectives. See April 19, 2012 Transcript at pp.22,
1.14-22. The Commission is not authorized to "alter or amend" the appeal order to the point of:
(1) re-writing the order in a blatant effort to circumvent the Court's decision; (2) altering the
order to significantly change provisions that were never in dispute on appeal; and (3) re-writing
the order to address issues that the Court did not provide a satisfactory remedy..
The Court's Decision is also clear in addressing all the relocation situations. First, there is
simply no question that and under well established precedent of the Idaho Supreme Court, where
a Public Road Agency requests, a utility must relocate its facilities at its own expense. Section
10, paragraph 2 alters the Court's Decision and well established precedent, which was never an
issue in the Commission proceedings or appeal to the Court. This conclusion was affirmed in
BUILD IDAHO INC'S BRIEF IN RESPONSE TO ORDER NO. 32532-2
ACHD v. IPUC, --Idaho--, 253 P.3d 678, 682 (2012). The Supreme Court further confirmed that
the IPUC does not have the authority to "require that a third party pay for services that the third
party did not request." 253 P.3d at 683.
Second, where it is a third party that requests that the utility move its facilities from a
public roadway, the issue is controlled by Section 6 of Rule H, not by section 10. A third party
has absolutely no right to compel the utility to move its facilities. See April 19, 2012 Transcript
at pp.29, 1.13-23 .However, if the utility agrees to move its facilities at the request of the third
party, then the utility has the right under Section 6 to compel the third party to pay specified
costs.
Third, if ACHD directs the utility to move its facilities, then the issue is controlled by
ACHD v. IPUC, Supra in which the Supreme Court held that the IPUC does not have the
authority to require payment from a third party even if facts exist to suggest that the relocation
that is requested of and required by the Public Road Agency "benefited a third party." 253 P.3d
at 682-83. However, the Supreme Court's Decision doesn't preclude Idaho Power from suing a
third party to recover relocation costs. 253 P.3d at 683. ("None of the parties posited a legal
theory upon which Company could recover from the third party, and we express no opinion on
that issue.")
While policy reasons may exist both in support of and in opposition to imposing costs
upon a third party in such situations, those policy concerns raise issues for legislative scrutiny
and do not fall within the authority of the Commission. Equally important, any attempt by the
Commission at this point to review, analyze, adjudge and assert jurisdiction of the merits of such
policy issues, would violate Idaho Code section 61-629, which authorizes the Commission to
BUILD IDAHO INC'S BRIEF IN RESPONSE TO ORDER NO. 32532-3
enter an Order "to meet the objections of the [Supreme] court", but not to engage in legislative
fact finding and policy analysis.
Accordingly, Build Idaho responds to the inquiry from the Commission set forth in Order
No. 32532 by noting that a third party may request that a utility relocate its facilities that are in a
public roadway, and that if the request comes from the third party to the utility, the utility has
authority to require payment of specified costs as set forth in Section 6. Where the request to
move utility facilities comes from a Public Road Agency, even if the request benefits a third
party, Section 10 and established Idaho law requires that the utility accomplish the relocation and
bear the costs of such relocation. The Supreme Court's Decision does not preclude or impair the
utility's ability to pursue any legal remedy in court against a third party to recover relocation
costs. 253 P.3d at 683.
RESPECTFULLY SUBMITTED.
I rz f-- Datedthis ('7 day of May, 2012.
HOLLAND & HART LLP
Scott D. Hess, of the firm
J. Frederick Mack, for the firm
BUILD IDAHO INC'S BRIEF IN RESPONSE TO ORDER NO. 32532-4
CERTIFICATE OF SERVICE
I hereby certify that on this I day of May 2012, I caused to be served a true and
correct copy of the foregoing by the method indicated below, and addressed to the following:
Commission Staff
Weldon B. Stutzman
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington
P.O. Box 83720
Boise, ID 83720-0074 ,
Building Contractors Association of
Southwestern Idaho
Michael C. Creamer
GIVENS PURSLEY, LLP
601 West Bannock Street
P.O. Box 2720
Boise, ID 83701-2720
City of Nampa AND Association of Canyon
County Highway Districts
Matthew A. Johnson
Davis F. VanderVelde
WHITE PETERSON GIGRAY ROSSMAN NYE
& NICHOLS, P.A.
5700 East Franklin Road, Suite 200
Nampa, ID 83687
The Kroger Co.
Michael L. Kurtz
Kurt J. Boehm
BOEHM, KURTZ & LOWRY
36 East Seventh Street, Suite 1510
Cincinnati, OH 45202
Kevin Higgins
ENERGY STRATEGIES, LLC
215 South State Street, Suite 200
Salt Lake City, UT 84111
O U.S. Mail, Postage Prepaid
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E-mail: weldon.stutzmanpuc.idaho.gov
O Telecopy
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IZI E-mail: mcc@givenspursicy.com
0 Telecopy
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E-mail: mjohnson@whitepeterson.com
dvandervelde@whitepeterson.com o Telecopy
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IZI E-mail: rnkurtz@BKLlawfirrn.com
kboehm@BKLlawfirrn.com o Telecopy
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EZI E-mail: khigginsenergystrat.com
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BUILD IDAHO INC'S BRIEF IN RESPONSE TO ORDER NO. 32532-5
Merlyn W. Clark, ISB No. 1026
D. John Ashby, ISB No. 7228
HAWLEY TROXELL ENNIS & HAWLEY LLP
877 Main Street, Suite 1000
P.O. Box 1617
Boise, ID 83701-1617
Lisa D. Nordstrom
Patrick A. Harrington
IDAHO POWER COMPANY
1221 West Idaho Street
P.O. Box 70
Boise, ID 83707
[Attorneys for Idaho Power Company]
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IZI E-mail: mc1arkhawIeytroxe1I.com
El Telecopy: 208.954-5210
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El E-mail: lnordstrom@idahopower.com
pharringtonidahopower.com o Telecopy: 208.388.6936
HOLLAND & HART LU'
5603564_2.DOC
BUILD IDAHO INC'S BRIEF IN RESPONSE TO ORDER NO. 32532-6