20191029final_order_no_34470.pdf

Office of the Secretary
Service Date
October 29,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER'S )CASE NO.IPC-E-19-26
APPLICATION FOR AUTHORITY TO )TRANSFER TITLE OF GOLDEN HILLS )ORDER NO.34470
MOBILE HOME PARK METER )
PEDESTALS )
On August 1,2019,Idaho Power Company ("Company")filed an Application with the
Commission seeking approval of two Transfer of Title Agreements ("Agreements")for the total
transfer of 170 meter pedestals at the Golden Hills Mobile Home Park ("Golden Hills")in
Pocatello from the Company to J.L.P.Trust and JCS Properties (collectivelythe "Trust"),owners
of Golden Hills.
On September 13,2019,the Commission issued a Notice of Application and Notice of
Modified Procedure setting public comment and Company replydeadlines.Order No.34439.Staff
timely filed written comments supporting the Application.No other comments were received.The
Company did not file a reply.The Commission held a telephonic public hearing on October 15,
2019,but no one testified.
With this Order we approve the Company's Applicationto transfer 170 meter pedestals
to the Trust.
BACKGROUND
The Company submitted its Application under the electric utility asset transfer statute,
Idaho Code §61-328.The Company requested that its Application be processed under Modified
Procedure,Rule 201 et seq.See IDAPA 31.01.01.201 through .204.Alternatively,the Company
suggested the Commission could confirm Commission approval of its Application is unnecessary
under the Commission's Rule of Procedure 274.See IDAPA 31.01.01.274 (noting the
"Commission may summarily accept settlement of an essentially private dispute that has no
significant implications for regulatory law or policy or for other utilities or customers upon the
written request of the affected parties").At the Decision Meeting on September 10,2019,the
Commission agreed with Staff's recommendation that the Company's Application be processed
under Modified Procedure.Typically,using Modified Procedure contemplates written
ORDER NO.34470 1
submissions without a live hearing.However,Idaho Code §61-328 states the Commission "shall
issue a public notice and shall conduct a public hearing upon the application (emphasis added)."
THE APPLICATION
The Company asked the Commission to approve two Agreements with the Trust.The
first agreement,dated November 6,2018,encompasses 22 meter pedestals.The second agreement,
dated July 16,2019,encompasses 148 meter pedestals.The lots at Golden Hills are individually
metered and the Company has a direct billing relationship with one or more tenants at each lot.
Under the Company's proposal it will update the meter pedestals before transferring them to the
Trust.The Trust will have an opportunityto inspect all meter pedestals before transfer,but the
Company will not warrant upgrades to the pedestals.No money will be exchanged under the
Agreements.
STAFF COMMENTS
Staff reviewed the Company's Application using Idaho Code §61-328(3)as a rubric
for its analysis.Idaho Code §61-328(3)requires:a)the transaction is consistent with the public
interest;b)the cost of and rates for supplying service will not be increased by reason of the
transaction;and c)the applicant acquiring the property has the bona fide intent and financial ability
to own and maintain the property in public service.
Staff believes the transfer is consistent with the public interest in that the Company's
transfer of meter pedestals is congruent with its Rule H Section (2)(g),which as of 1981 mandated
mobile home parks install their own meter pedestals.This transfer allows the Company to treat
customers at Golden Hills the same as it treats customers at other mobile home parks established
after March 31,1981.Additionally,by having the meter pedestals upgraded before the transfer,
the Company will be transferring up-to-date pedestals.
Staff does not believe that the Company's transfer of 170 meter pedestals will increase
rates or costs for customers.Staff learned that the upgrades will cost the Company about $221,000,
roughly $80,000 of which is for upgrading the service for each pedestal from 100 amps to 200
amps.However,in the Company's production responses,it noted that the benefits of the transfer,
even with the upfront costs,outweigh the long term costs of maintenance and repair associated
ORDER NO.34470 2
with the meters.'Staff wants to see a cost-benefit analysis for this type of transfer with future
filings.
Staff noted that Idaho Code §61-328(3)(c)does not fully apply in this case because
once the meter pedestals are transferred,the service from the pedestal to the customer will not be
maintained in the public service because the Trust is not a utility,municipality,or co-op.Staff
believes,however,that the Trust has significant financial incentive to maintain the meter pedestals
in proper working order for its tenants.
COMMISSION FINDINGS AND DECISION
The Commission has reviewed the record,including the Application and comments.
We find that the transfer is permitted under Idaho Code,and consistent with the Company's rules.
Idaho Power is an electrical corporation and public utility,and the Commission has
jurisdictionover it and the issues in this case under Title 61 of the Idaho Code,specifically sections
§§61-302 and 61-328.In reviewing the Company's proposed transfer under the requirements of
Idaho Code §61-328(3),the Commission finds the transfer meets each requirement and that the
Trust will have significant financial incentive to maintain the meter pedestals in safe working
condition for its tenants.Additionally we find that transferring meter pedestals from the Company
to the Trust is consistent with the Company's Rule H,Section (2)(g),and previous meter pedestal
transfers authorized by the Commission.
Finally,the Commission directs the Company to prepare a cost-benefit analysis for the
transfer of meter pedestals to be used in future cases where Company-owned pedestals are to be
upgraded at the Company's expense ahead of transference.Among other items,this analysis
should depict the costs of repairing,maintaining,and servicing the existing Company-ownedmeter
pedestals versus the costs of upgrading and transferring the meter pedestals.
ORDER
IT IS HEREBY ORDERED that the Company's Application is approved.The
Company may transfer 170 upgraded meter pedestals to J.L.P.Trust and JCS Properties.
IT IS FURTHER ORDERED that the Company will prepare a cost-benefit analysis for
the future transfer of meter pedestals to mobile home park owners and operators.
1 The Company based its justification on information from Case No.IPC-E-93-19,which stated as of 1993,it had difficulty finding replacement
parts for older meter pedestals and was spending $41,000 annually on labor and vehicle expenses.
ORDER NO.34470 3
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 23
day of October 2019.
PAUL KJ LL NDER,PRESIDENT
KRI TINE RAPER,CO MISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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