20200320Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: MARCH 20,2020
SUBJECT:IDAHO POWER COMPANY'S APPLICATION FOR APPROVAL OF
THE TRANSFER AND SALE OF CERTAIN ASSETS TO THE CITY OF
NAMPA, IDAHO; CASE NO. IPC-E-20-10.
On March 3,2020,Idaho Power Company ("Idaho Power" or "Company") applied for
Commission approval of its proposed sale and transfer of certain assets to the City of Nampa,
Idaho ("City"). The Company requests that this case be processed by Modified Procedure under
the Commission's Rules of Procedure.
THE APPLICATION
The Company provides electric service to the City's wastewater treatment plant.
Application at l-2. Idaho Power owns and operates transformers and other facilities beyond the
point of delivery ("POD") for the sole purpose of meeting the City's service requirements. Id. at
2. The City pays Idaho Power monthly facilities charges to use them. Id. The City now wants to
buy the Company's facilities under Company Rule M, Section 3. Id. The Company and City have
thus signed an Assets Purchase and Transfer of Title Agreement ("Agreement"). Id. The
Company asks the Commission to approve the Agreement as soon as practicable.
Idaho Power asserts the Assets $793,526 sale price was set through Rule M. Id. at 5-
6. The Company states the Rule M methodology ensures the transaction will not harm Idaho
Power's other customerc. Id. at 6. Besides the sale price, the City also would pay the Company
certain transaction-related costs. Id. at 8-9.
2DECISION MEMORANDUM
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application, Notice of
Intervention Deadline, Notice of Modified Procedure and Notice of Telephonic Public Hearing.
First, Staffrecommends the Commission set a twenty-one (21) day intervention deadline. Staff
also recommends that the Commission set a May 5,2020, comment deadline for Staff and any
interested parties and a May l2,2020,deadline for the Company to file reply comments, if needed.
Staff also believes the statutory language in ldaho Code $ 6l-328 describing the supply of power
to "the public or any portion thereof'could be read to include the supply of power to the City for
its wastewater treatment facility. As a result, in a past, similar case the Commission has held a
public hearing. See IPC-E-17-17. Accordingly, Staff recommends that the Commission schedule
a telephonic public hearing in this case. See Order No. 34602 (telephonic/virtual hearings to
replace public hearings in an effort to reduce exposure to Covid-l9). Staff recommends that the
Commission set a telephonic public hearing during the proposed comment period.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Petition, Notice of Intervention
Deadline, and Notice of Modified Procedure setting a day twenty-one (21) day intervention
deadline, an May 5,2020, comment deadline, and an May 12,2020 deadline for Idaho Power to
file reply comments, if needed? Does the Commission wish to schedule a telephonic public
hearing in this case to take place during the comment period?
R. Hammond Jr
Attomey General
I:\LegaI\ELECTRICVPC-E-20-l0UPCE20lo_dec memojrh.doc
DECISION MEMORANDUM 2