HomeMy WebLinkAbout20160202Reply Comments.pdfKlffi*.
An TDACORP Company
RECEIVED
2016 FEB -2 Plt h: 30
ur,'"?ffLp&tffil8t'o*
LISA D. NORDSTROM
Lead Counsel
! nordstrom@idahopower.com
February 2,2016
VIA HAND DELIVERY
Jean D. Jewe!!, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-15-26
Transfer and Sale of Certain Assets to the FBI - ldaho Power Company's
Reply Comments
Dear Ms. Jewell:
Enclosed for filing in the above matter please find an original and seven (7) copies
of ldaho Power Company's Reply Comments.
lf you have any questions about this filing, please do not hesitate to contact me.
Very truly yours,
fi"*a(^u*"^-
Lisa D. Nordstrohr
LDN:kkt
Enclosures
LISA D. NORDSTROM (lSB No. 5733)
SHELL! D. STEWART (lSB No. 7459)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: (208)388-5825
Facsimile: (208) 388-6936
I no rd strom @ ida hopower. co m
sstewart@idahopower.com
Attorney for ldaho Power Company
RECEIVED
?01$ftB -2 Pll h:30
,TrJ,?fff%il{?fil8',o*
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
!N THE MATTER OF THE APPLICATTON )
oF |DAHO POWER COMPANY FOR AN ) CASE NO. !PC-E-15-26
ORDER APPROVING THE TMNSFER )
AND SALE OF CERTAIN ASSETS TO ) IDAHO POWER COMPANY'S
THE UNITED STATES DEPARTMENT ) REPLY COMMENTS
OF JUSTICE FEDERAL BUREAU OF )
INVESTIGATION.
On November 25,2015, ldaho Power Company ("ldaho Powe/' or "Company")
applied to the ldaho Public Utilities Commission ("Commission") requesting an order on
or before February 25, 2016, approving the sale and transfer of certain assets to the
United States Department of Justice Federal Bureau of lnvestigation ("FBl'). lf
approved, the sale and transfer of the assets would result in the FBI owning, operating,
and maintaining all facilities installed beyond the point of delivery. ldaho Power
respectfully submits the following Reply Comments in response to comments filed by
the Commission Staff ("Staff') and the Industrial Customers of ldaho Power ("lClP") on
January 26,2016.
IDAHO POWER COMPANY'S REPLY COMMENTS - 1
I. PRICING METHODOLOGY
ldaho Power appreciates the comments submitted by Staff and ICIP. Both
parties reviewed the Company's Application; Staff recommends that the Commission
approve ldaho Power's Application to sell assets to the FBI as proposed, and ICIP does
not oppose it. Staff Comments at 7, lClP Comments at 2. Both parties recommended
that the Commission not endorse the Company's pricing methodology as a precedent
going fonruard. Staff Comments at 7, lClP Comments at 3. Staff argued that, although
the methodology may be appropriate for establishing asset sale prices in many
circumstances, each proposed sale is unique, and different circumstances may warrant
different pricing methods or contract terms. Staff Comments at 7. ldaho Power agrees
with Staff. While the pricing methodology proposed in this case provides a reasonable
framework for evaluating facilities charge asset sales in the future and may be
applicable in subsequent facilities charge asset sales transactions, other circumstances
may warrant different pricing methods or contract terms to reflect the value proposition
present in a particular transaction.
II. MULTI-UTILITY PROPERTY VALUATION DOCKET
Because each proposed sale is unique and should be considered individually,
ldaho Power does not believe that the lClP-recommended docket to set rules for
valuing the purchase price of utility-owned facilities on the customer side of the point of
delivery is necessary. lClP Comments at 3. As the Commission recognized in Case
No. IPC-E-13-17'. "A valuation of the property by the Commission is meaningless if the
Company is unwilling to sell at anything less than its stated price." Order No. 32940 at
6. lt is not necessary to open a docket that will set rules for valuing property if a uniform
IDAHO POWER COMPANY'S REPLY COMMENTS - 2
methodology could result in amounts for which the utilities are not willing to sell their
assets.
The Commission should instead retain flexibility to value purchase amounts of
property transactions on a case-by-case basls contingent on the factual circumstances.
This is consistentwith the Commission's stated intent in Case No. IPC-E-11-08: "we
envision that the sale of facilities wi!! occur on a case-by-case basrs and that the
purchasing price will be based upon the value of the facilities to be transferred to the
customers." Order No.32426 at 33 (emphasis added).
ilt. coNcLUStoN
!f approved, the Assef Purchase and Transfer of Title Agreement wi!! allow the
FBI to meet its goal of owning and operating all the electrical equipment on the FBI's
side of the point of delivery. The purchase price agreed to by ldaho Power and the FBI
accomplishes this without negative impacts to other ldaho Power customers or
shareowners. Recognizing that no party opposes approval of the sale, ldaho Power
recommends the Commission approve the Application as filed.
Respectfully submitted this 2nd day of February 2016.
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S REPLY COMMENTS - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 2nd day of February, 2016,1 served a true and
correct copy IDAHO POWER COMPANY'S REPLY COMMENTS upon the following
named parties by the method indicated below, and addressed to the following:
Gommission Staff
Daphne Huang
Deputy Attomey General
ldaho Public Utilities Commission
47 2 W est Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
lndustrial Customers of ldaho Power
Peter J. Richardson
Gregory M. Adams
RICHARDSON ADAMS, PLLC
515 North 27h Street (83702)
P.O. Box 7218
Boise, ldaho 83707
Dr. Don Reading
6070 Hi!! Road
Boise, ldaho 83703
X Hand Delivered
_U.S. Mail
Overnight Mail
FAXX Email daphne.huanq@puc.idaho.oov
Hand Delivered
U.S. Mail
Overnight Mail
FAX
Email peter@richardsonadams.com
oreq@ richard sonadams. com
Hand DeliveredX U.S. Mail
_Overnight Mail
_FAXX Email dreadinq@mindsorino.com
IDAHO POWER COMPANY'S REPLY COMMENTS.4