20180119Updated Asset Purchase Price .pdf

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An IDACORP Company
LISA D. NORDSTROM
Lead Counsel
I [e-mail]
January 19,2018
VIA HAND DELIVERY
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Case No. IPC-E-17-17
Transfer and Sale of Certain Assets to the City of Meridian - Updated Asset
Purchase Price lnformation
Dear Ms. Hanian:
On December 6, 2017,ldaho Power Company ("ldaho Power" or "Company") filed
an application with the ldaho Public Utilities Commission ("Commission") for an order
approving the transfer and sale of certain assets located in Ada County, ldaho, to the City
of Meridian. The Company makes this supplementalfiling to provide the Commission an
updated purchase price, found in Section 3 of the Asset Purchase and Transfer of Title
Agreement (included as Attachment 1 to ldaho Power's Application) ("Agreement").
As described in paragraph 9 of the Company's Application, the purchase price is
subject to change depending on the actual closing date of the sale. The total transaction
amount of $761,693 presented in the Company's Application was based on the sale
closing in2017. Because the sale is now expected to close in2018, ldaho Power updated
various elements of the purchase price calculation including those elements impacted by
federal corporate income tax rate changes effective January 1, 2018. As a result, the
updated purchase price is $668,805. The updated purchase price results primarily from
the change in tax rates, but also reflects an additional year of depreciation in the net book
value of the assets, an additionalyear of the true-up of the past levelized rate of return, as
well as other updates reflected below. The following table summarizes the proposed
updates, which are subject to acceptance by the City of Meridian:
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
Re
Diane M. Hanian, Secretary
January 19,2018
Page 2
Description
Revised
Amount
Original
Amount
Net
Change
Purchase Price Components
Net book value
True up of past levelized rate of return
Near-term rate of return impact resulting from the sale of asset:
Near-term operational impact resulting from sale of assets
Total Purchase Price - before tax
Net gross-up for tax
Total Purchase Price - after tax
Work order closing costs
Total Purchase Price
Sectionalizer Components
Sectionalizer book value
Sectionalizer true-up past levelized rate of return
Total Price - before tax
Net gross-up for tax
Sectionalizer Total
TotalAmount Due
5 338,287 S 353,091 S (14,804)
90,485 81,280 9,206
63,319 63,903 (584)
83,015 83,783 (7671
575,10g 5g2,O57 t
1S,S+5177,266 L67,432 (84,155)
652,374 743,489 (91,115)
652,854 743,959 (91,115)
t32
L4,558 (42e)
3,055 (L,3441
15,951 t7,724 (L,773)
s 568,80s 9_Zg1f91 9_19?,8qq)
As noted in paragraph 9 of the Company's Application and Section 3 of the
Agreement, this updated purchase price is subject to change if ldaho Power replaces any
of the assets prior to the closing of the transaction.
Very truly yours,
9,32L
4,908
74,229
7,722
9,882 (561)
776
o4-A@
Lisa D. Nordstrom
LDN:csb
cc: Service List
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 19th day of January 2018 I served a true and
correct copy of the LETTER TO DIANE M. HANIAN REGARDING UPDATED ASSET
PURCHASE PRICE INFORMATION upon the following named parties by the method
indicated below, and addressed to the following:
Commission Staff
Karl Klein
Deputy Attorney General
ldaho Public Utilities Commission
47 2 W est Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
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CERTIFICATE OF SERVICE