20160126Comments.pdf

Peter J. Richardson (ISB No. 3195)
Greg Adams (ISB 7454)
Richardson Adams, PLLC
515 N. 27th Street
P.O. Box 7218
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonandoleary. com
Attorneys for the Industrial Customers of Idaho Power
RECEIVED
?0i5 Jill{ 26 PH l:20
,,,, l-r?i$LccJf?&18', o *
BEFORE THE
IDAHO PUBLIC UTILITTES COMMISSTON
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER APPROVING THE TRANSFER
AND SALE OF CERTAIN ASSETS TO
THE UNITED STATES DEPARTMENT OF
JUSTICE FEDERAL BUREAU OF
INVESTIGATION.
CASE NO. IPC-E-15-26
COMMENTS OF THE INDUSTRIAL
CUSTOMERS OF IDAHO POWER
COMES NOW the Industrial Customers of Idaho Power ("ICIP") and pursuant to that
Notice of Modified Procedure contained in Order No. 33433 issued by the Idaho Public Utilities
Commission ("Commission") on December 15, 2}l6,and hereby provides its Commentsl and
recommendation for additional proceedings to govern future requests where a customer of an
Idaho investor-owned utility ("IOU") seeks to purchase facilities that are dedicated to that single
customer's use and that are located on that customer's side of the IOU's Point of Delivery
("POD").
The ICIP does not object to the approval of Idaho Power Company's ("Company"
or "ldaho Power") contract with the Federal Bureau of Investigation ("FBI") in this docket.
' By Orde. No. 33443 issued on December 23,2015,the Commission extended the comment
deadline to January 25,2016, and the reply comment deadline to February 12,2016.
Comments of the ICIP - IPC-E-15-26
Neither, however, does the [ClP endorse the methodology underlying the price calculated by
Idaho Power for the sale of facilities on the FBI-side of the POD.
lt has consistently been the position of the ICIP that a utility sale of facilities
beyond the POD that are dedicated and used to serve that single customer should be priced only
at the fully depreciated book value ("net book value") of those facilities. This is the
methodology used by Idaho Power (and approved by this Commission) for the sale of Idaho
Power-owned facilities beyond the POD to the Sinclair Oil Company, dba, the Sun Valley Resort
in Docket No. IPC-E-O5-16. Allowing customers to purchase assets dedicated to their sole
individual use at net book value is both a reasonable and ratepayer neutral event. tdaho Power's
application in this docket suggests otherwise. However, if given the opportunity in a docket
called for the purpose of fully vetting this question, the ICIP believes it can demonstrate that the
sale of such equipment at net book value is a ratepayer neutral event.
The IOUs subject to this Commission's jurisdiction appear to take different
approaches to this question. For example, as pointed out by Don Sturtevant in Idaho Power's
most recent general rate case, it appears that Avista Utilities calculates the sales price for
facilities beyond the Company's POD at the net depreciated book value of those facilities. See,
Don Sturtevant, DI, at page 9, IPC-E-I1-08. In addition, it appears that PacifiCorp, dba Rocky
Mountain Power, sells such facilities at the depreciated net book value. See PAC-E-I5-15. In
that case, although Rocky Mountain Power actually charges a premium for the sale of a
'ocustomer," the purchase price for the sale of the facilities used to serve that customers is the net
book value of those facilities.
Because it does not wish to derail the results of settled negotiations between the
FBI and ldaho Power, the ICIP does not oppose approval of the instant application. The ICIP
Comments ofthe ICIP - IPC-E-I5-26
does, however, believe the Commission should disclaim that this docket has any precedential
value in establishing any controlling rule (explicitly or implicitly) for governing future sales of
IPCo-owned facilities beyond the customer's POD.
To that end, and because the Company's Rule M is silent on how to price such
sales and because of the apparent inconsistent treatment of such sales among the IOUs subject to
this Commission's jurisdiction, the ICIP recommends the Commission open a docket for the
purpose of setting clear, transparent, ratepayer neutral and fair rules for valuing the purchase
price of utility-owned facilities that are dedicated to, and serve only a single customer, on the
customer side of the POD.
RESPECTFULLY SUBMITTED THIS 26thday of January 2016.
Richardson Adams, PLLC
,r("fr,M
Peter J. Richardson
Industrial Customers of Idaho Power
Comments ofthe ICIP - IPC-E-I5-26
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 26th day of January , 2016, a true and correct copy of
the within and foregoing COMMENTS OF THE INDUSTRIAL CUSTOMERS OF IDAHO
POWER in Docket No. IPC-E-15-26 was served as indicated below to:
Ms. Jean Jewell
Commission Secretary
Idatro Public Utilities Commission
P O Box 83720
Boise lD 83720-0074
Lisa D. Nordstrom
Idaho Power Company
1221 West Idaho Street
P.O. Box 70
Boise,Idaho 83707
lnordstrom@ idahopower. com
dockets@ idahopower. com
Tami White
Idaho Power Company
l22l West ldaho Street
P.O. Box 70
Boise,Idatro 83707
ttatum@ idahopower. com
X_ Hand Delivery
_ U.S. Mail, postage pre-paid
_ FacsimileX Electronic Mail
-X Hand Delivery
_ U.S. Mail, postage pre-paid
_ Facsimile
X Electronic Mail
X Hand Delivery
_U.S. Mail, postage pre-paid
_Facsimile
X_ Electronic Mail
Nina Curtis
Comments of the ICIP - IPC-E-I5-26