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Home My WebLink About20151005Asset Exchange Update.pdfYPecrnConp October 5,2015 California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 Idaho Public Utilities Commission 472W. Washington Boise, D 83702 Public Utility Commission of Oregon 201 High Street SE, Suite 100 Salem, OR 97301 Pacific Power Rocky Mountain Power PacifiCorp Transmission 35ffi*. An IDACORP Company h,? c.r-'to(-, I issfdh t - Utah Public Service Commission Heber M. Wells Building, 4m Floor =160 East 300 South E6 Salt Lake City, UT 841I I HH,at, Washington Utilities and Transportation C@p 1300 S. Evergreen Park Drive S.W. f"f P.O. Box 47250 '-.- Olympia, WA 98504 -7250 attt > @ Public Service Commission of Wyoming z- 2515 Warren Avenue, Suite 300 Cheyenne, WY 82002 jr.) r.i'ifl{!1 ;: frl (Jl(^) RE: PacifiCorp-Idaho Power Asset Exchange Update Case Nos. PAC-E-14-11 and IPC-E-14-41 In December2}l4,PacifiCorpl and Idaho Power Company filed applications with each of their state commissions and Federal Energy Regulatory Commission (FERC) for approval of an exchange of certain transmission assets. PacifiCorp and Idatro Power are pleased to noti$ the commissions that they have now obtained necessary approvals, with the docket numbers and the approval dates shown below. FERC-DocketNos. ECl5-54-000, ERl5-683-000, ERl5-686-000, ERl5-680-000, and ERI 5-68 l -000-June 17, 2015 California-Application (A.)l 4-12-022-August 27, 201 5 Idatro{ase Nos. PAC-E-I4-I I and IPC-E-14-41-June 5,2015 Oregon-Docket No. UP 315-June 9,2015 Utatr-Docket No. I 4-03 5- I 5 0-Notice; No commission approval required Washington-Docket UE- 1 44 I 36-.September 24, 201 5 Wyoming-Docket Nos. 20000-465-EA- I 4 and 20005-35-EA- I 4-August 7, 20 I 5 PacifiCorp and Idaho Power plan to close the transaction on October 30, 2015. This will allow the companies to begin operating under the new agreements by November 4,2015. Within 60 days after closing, there will be a net book value true-up and the companies will provide final accounting entries to FERC and the Oregon, Washington, and Wyoming state commissions as required by the approval orders. PacifiCorp and Idatro Power recently became aware of guidance issued by the Internal Revenue Service (IRS) relating to $1031 tax-deferred I PacifiCorp does business in Californi4 Oregon, and Washington as Pacific Power and in Idatro, Utah, and Wyoming as Rocky Mountain Power. Pacifi Corp-Idaho Power Assst Exchange Update Octobcr 5,2015 Pagc2 likc.kind orctraagc tansactions ($1031 Exchaage). The IRS advised utillty tarqa)rers who arc parties to a $1031 Exchange to recrove the taxdepreciation-relatod accuurulated defcrrd income tax liability (AD[D assooiatod with the cxchanged assets from rate basc to avoid non- compliance with erdsting IRS normalization rcquireinents. PacifiCorp, Idatro Power, and their respectivc cxtcrnal auditors and tax advisors agree that the ftral accounting for the associated transmission asset exchmge will rcquire cntics to comply with the now IRS guidance. The cxpcotd practical effect oftho artics will be an incteasc ofrate basc resulting from thc rcrnoval of ADIT related to the exctranged assots, and no change to the calculation of the income tax provision for regulatory or financial accounting purpos€s. Thesc mticipated enties will be reflestod in ttre final accounting enties associatod with the trmsaction, and wil be fild with FERC and certain state commissions as rcquircd in the final orders ap,proviqg the transaction. For questions rcgarding this matter, ploase contast Bryce Dalley at Pacific Power, JeffLars€o at Rocky Mormtain Power, or Tim Tatum at Idaho Power. Our contact infonnation is shown bclow. Sincerely, BryccDallcY K l^ars€rl Vicc Presidc,nt, PacificPower 503-E136389 Vicc hcsidcut, Rcgulation RockyMountain Powcr 80t-2204497 Gcneral Manager, Rcgulatory Affairs ldaho PorverCompany 208-388-5s1s