HomeMy WebLinkAbout20150702Decision Memo.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL
DATE: JULY 1, 2015
SUBJECT: IDAHO POWER’S APPLICATION FOR APPROVAL OF LONG-TERM
MAINTENANCE PROGRAM CONTRACT WITH SIEMENS ENERGY,
SALE OF SPARE PARTS INVENTORY TO SIEMENS ENERGY, AND
DEFERRAL OF ASSOCIATED COSTS, CASE NO. IPC-E-15-17
On June 5, 2015, Idaho Power Company applied to the Commission for an Order
approving IPC’s: (1) long-term program contract with Siemens Energy for maintenance of IPC’s
gas plants; (2) sale and transfer to Siemens of $21.9 million in spare parts for IPC’s gas plants;
and (3) proposed accounting treatment for the transaction. The Company requests that the
Commission process the case under Modified Procedure.
STAFF RECOMMENDATION
Staff recommends that the Application be processed by Modified Procedure with an
August 27, 2015 comment deadline and a September 3, 2015 reply deadline. Further, because
the Application involves an asset sale, Idaho Code § 61-328(2) also requires the Commission to
issue a public notice and “conduct a public hearing upon the application.” Staff thus
recommends that the Commission schedule a September 9, 2015 hearing for the Commissioners
to question the parties about the Application and the standards set out in Idaho Code § 61-328.1
The Commission used a similar procedure in Case No. PAC-E-13-06 (Rocky Mountain Power’s
application to sell hydroelectric plant to St. Anthony Hydro LLC). Idaho Power concurs with
this schedule.
1 Before authorizing a sale of utility property, the Commission must find, under Idaho Code § 61-328: (1) that the
transaction is consistent with the public interest; (2) the cost of and rates for supplying service will not be increased
by reason of such transaction; and (3) the purchaser has the bona fide intent and financial ability to operate and
maintain said property in the public service. The utility bears the burden of showing that the standards set out above
have been satisfied. Idaho Code § 61-328(2). The Commission may approve, reject or condition the transaction’s
approval on such terms as the public and convenience and necessity may require. Idaho Code § 61-328(4).
DECISION MEMORANDUM 2
COMMISSION DECISION
Does the Commission wish to issue an Order setting: an August 27, 2015 comment
deadline, a September 3, 2015 reply deadline, and a September 9, 2015 hearing for the
Commissioners to question the parties about the Application and the standards set out in Idaho
Code § 61-328?
Karl Klein
Karl Klein
Deputy Attorney General
M:IPC-E-15-17_kk