20130802Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
FROM:KRISTINE SASSER
DEPUTY ATTORNEY GENERAL
DATE:JULY31,2013
SUBJECT:SIMPLOT’S APPLICATION AND REQUEST FOR A DETERMINATION
OF PRICE REGARDING THE PURCHASE AND ACQUISITION OF
CERTAIN ASSETS,CASE NO.IPC-E-13-17.
On July 16,2013,J.R.Simplot Company filed an Application with the Commission,
pursuant to Idaho Code §6 1-328,for approval of Simplot’s purchase and acquisition of certain
assets owned by Idaho Power.Simplot requests that the Commission process its Application by
Modified Procedure.
THE FILING
Simplot’s Application states that Idaho Power provides electrical service to Simplot
pursuant to Idaho Power’s Schedule 19.Simplot maintains that some of the service is provided
with utility-owned facilities beyond the point of delivery.
Simplot asserts that it is closing its existing Plant and constructing a modern,state of the
art potato processing facility immediately adjacent to the existing Plant.In closing the Plant,
Simplot would like to purchase some of the Idaho Power-owned facilities.Simplot states that it
and Idaho Power agree that the net book value of the facilities that Simplot wants to purchase is
approximately $119,725.1-lowever,the parties have been unable to agree on a purchase price.
Simplot has offered to purchase the facilities for $85,910.Idaho Power has offered to sell the
facilities for $272,928.
Simplot states that,pursuant to Idaho Code §6 1-328 and Order No.32426,a
Commission proceeding is necessary before a utility can sell or transfer ownership of any of its
distribution facilities.Simplot further asserts that it is the Commission’s responsibility to
determine the facility’s value and whether the transaction is in the public interest.Filing at 2.
DECISION MEMORANDUM 1
Simplot maintains that it is willing to bear the responsibility of operating,maintaining
and replacing the facilities.Simplot further asserts that the sale and purchase of the Idaho Power
facilities will have “absolutely no adverse impact (either on rates or service)on Idaho Power’s
other ratepayers.”Filing at 7.
STAFF RECOMMENDATION
Staff has reviewed Simplot’s filing,as well as the applicable statutes and rules.Staff
believes that Idaho Code §61-328 presumes that the filing of an Application (made pursuant to
this statute)would be made by the utility.In addition,the filing of an Application does not
trigger a timeframe within which the opposing party must respond or answer.See generally Rule
57,IPUC Rules of Procedure.In order to elicit a response/answer by Idaho Power,Staff
recommends that the Commission construe Simplot’s Application as a Petition and require Idaho
Power to answer the petition within 21 days of the issuance of the Commission’s Notice of
Petition pursuant to Rules 53.03 and 57.02.After the deadline for Idaho Power’s answer has
passed,Staff will convene a pre-hearing conference with the parties and recommend further
procedure to the Commission.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Petition requiring Idaho Power to answer
within 21 days of the issuance of the Commission’s Notice?
Knstine A.Sasser
Deputy Attorney General
Imcmns!IPCE 1317_ks
DECISION MEMORANDUM 2