20200603Application.pdf

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LISA D. NORDSTROM
Lead Gounsol
I nordstrom@ida hopower.com
June 3, 2020
VIA ELECTRONIC FILING
Diane M. Hanian, Secretary
ldaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, ldaho 83714
Re: Case No. IPC-E-20-25
ldaho Power Company's Application for an OrderApproving the Transfer of
Certain Assets Associated with the Hemingway Substation
Dear Ms. Hanian
Attached for electronic filing in the above matter is ldaho Power Company's
Application for an Order Approving the Transfer of Certain Assets Associated with the
Hemingway Substation. lf you have any questions about this filing, please do not hesitate
to contact me.
Very truly yours,
X;!.(^t +,.^,
Lisa D. Nordstrom
LDN:sdh
Enclosure
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: (208) 388€1 17
Facsimile: [phone]
lnordstrom@ id ahopower. com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR AN
ORDER APPROVING THE TRANSFER
OF CERTAIN ASSETS ASSOCIATED
WITH THE HEMINGWAY SUBSTATION.
CASE NO. IPC-E-20-25
APPLICATION
ldaho Power Company ("ldaho Powef or "Company"), in accordance with ldaho
Code S 61-328 and 61-524 and Rule of Procedure 52, hereby respectfully makes
application to the ldaho Public Utilities Commission ("Commission') for an order
approving the conveyance of an irregular 1.91 acres of land and roadway improvements
(the "1.91 Acre Parcel") at the Hemingway Substation site, located in Owyhee County
("County"), ldaho, to the County.
!n support of this Application, ldaho Power asserts as follows:
I. BACKGROUND
1. In 2008, the Company purchased nearly 150 acres of land near Melba,
ldaho in Owyhee County, for what would become ldaho Power's largest substation. The
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APPLICATION - 1
Hemingway Substation, with a footprint the size of 60 football fields, was energized in
May 2010 and will be the central point joining two major S00-kilovolt ("kV') transmission
lines: one from Wyoming and one from Boardman, Oregon. lt also allowed for the new
230-kV Hemingway-Bowmont line to go into service the following month, improving
reliability and increasing options for ldaho Power to supply electricity to customers.
2. As shown on the site layout of the Hemingway Substration site attached
hereto as Attachment No. 1, the Company constructed a new unpaved access road on
the Hemingway Substation site to provide access from Highway 78 to the substation.
The ldaho Power access road travels adjacentto and partly crosses the Wilson Cemetery
Road as shown in Attachment No. 1. The Hemingway Substation and associated road-
way improvements closed to the Company's Federal Energy Regulatory Commission
('FERC) Account 101, Electric Plant-in-Service, in July 2010.
3. After the Company installed the access road, residential property owners
located south of the Wilson Cemetery Road began using ldaho Power's access road
rather than the Wilson Cemetery Road to enter their properties. Eventually, the Wilson
Cemetery Road became overgrown from non-use and impassable for vehicles, and
drivers instead used the ldaho Power access road.
4. ln July 2019, the County denied a building permit for one of the residents
along the south of Wilson Cemetery Road because the resident was not able to show
public road access to the property. The County declined to grant a waiver or variance
when requested. The resident and other concerned neighbors contacted ldaho Power to
request assistance in meeting the County's requirements.
II. DESCRIPTION OF TRANSACTION
5. To resolve the situation, on August 26, 2019, the Company appeared in
APPLICATION - 2
front of the Owyhee County Board of Commissioners. After determining that a waiver or
variance was not available, Idaho Power and the County agreed in January 2020 that the
best solution would be for the Company to grant the 1.91-Acre Parcel to the County.
6. To re-establish lega! access for the land owners, the Company executed
and recorded a Special Warranty Deed to Owyhee County for the 1.91 acres of land,
subject to easements of ldaho Power, on February 14,2020. See Attachment No. 2 for
the SpecialWarranty Deed, Legal Description and Record of Survey. As a result of this
conveyance, the County took ownership of the access road and also the roadway that
extends south from the access road across the 1.91 Acre Parcel to reach the residents
south of Wilson Cemetery Road.
7. ln addition to resolving the access issues of neighboring property owners,
the conveyance of land to the County provided several benefits to ldaho Power. First,
ldaho Power would continue to have the right to use the access road, now as a County
road, without having the obligation to maintain the road. Second, ldaho Power would no
longer have the liability that accompanies ownership of access roads used by the public.
Finally, the conveyance achieved a beneficial use of the 1.91 Acre Parcel; still
encumbered by the Wilson Cemetery Road, which had not been vacated by the County,
the value of the 1.91-Acre Parcel was greatly limited for other uses. Consequently, the
Company did not require payment from the County for the 1.91 Acre Parcel conveyance.
fii. TDAHO CODE S 61-328
8. Pursuant lo ldaho Code S 61-328, an electric utility must obtain approval
from the Commission before it sells or transfers ownership in any generation,
transmission, or distribution plant located in ldaho.
APPLICATION - 3
Before authorizing the transaction, the public utilities
commission shall find: (a) That the transaction is consistent
with the public interest; (b) That the cost of and rates for
supplying service will not be increased by reason of such
transaction; and (c) That the applicant for such acquisition or
transfer has the bona fide intent and financial ability to operate
and maintain said property in the public service.
ldaho Code S 61-328(3). ldaho Power acknowledges that this Application is not timely
and will endeavor to improve the timeliness of future filings.
L The transfer of the 1.91 Acre parcel meets the above-stated requirements
of ldaho Code S 61-328(3). The transaction is in public interest as it resolves potential
litigation and does not impact the Company's ability to continue to provide safe, efficient,
and reliable service to its customers. ldaho Power will continue to be able to use the
access road over the 1.91 Acre Parcel as a public county road, without ownership liability
and maintenance obligations.
10. The conveyance of the land was the only resolution acceptable to the
Owyhee County Commissioners and a reasonable solution to avoid incurring further costs
to mitigate access issues, ultimately resulting in little to no financial impact to ldaho Power
and its customers. ldaho Power therefore believes the conveyance is consistent with the
public interest. Lastly, as a governmental body with taxing authority, the County has the
bona fide intent and financial abilityto operate and maintain the land in the public service.
'11. As of February 29,2020, the original cost of the'1.91 acres of land was
$26,488 while the net book value of the site improvements associated with the grading
and roadway access was $41,394. To record the conveyance of the land, the original
cost is removed from FERC Account 101 , Electric Plant-in-Service, with an offset to FERC
Account 421.2, Loss on the Disposition of Property while the net book value of the site
APPLICAT]ON - 4
improvements are removed from FERC Account 101, Electric Plant-in-Service with a
corresponding offset to FERC Account 108, Accumulated Reserve. See Attachment No.
3 for the journal entries associated with the transaction.
IV. MODIFIED PROCEDURE
12. ldaho Power believes that a technica! hearing is not necessary to consider
the issues presented herein, and respectfully requests that this Application be processed
under Modified Procedure; i.e., by written submissions rather than by hearing. RP 201 ef
seg. lf, however, the Commission determines that a technical hearing is required, the
Company will present testimony and support the Application in such hearing.
V. COi||MUNICATIONS AND SERVICE OF PLEADINGS
13. Communications and service of pleadings with reference to this
proceeding should be served on the following:
Lisa D. Nordstrom Matt Larkin
ldaho Power Company ldaho Power Company
1221 West ldaho Street (83702) 1221 West ldaho Street (83702)
P.O. Box 70 P.O. Box 70
Boise, ldaho 83707 Boise, ldaho $747
[e-mail] [e-mail]
dockets@ idahopower. com
VI. REQUEST FOR RELIEF
14. ldaho Power respectfully requests a Commission order authorizing the
conveyance of the 1.91 Acre Parce! at the Hemingway Substation site to the County
consistent with the requirements of ldaho Cde 561-328.
DATED at Boise, ldaho, this 3d day of June 2020.
LISA D.M
APPLICATION - 5
Attorney for ldaho Power Company
VERIFICATION
STATE OF IDAHO
County of Ada
LISA D. NORDSTROM, being duly swom, deposes and states that she is an
attorney for ldaho Porer Company, that she has read the foregoing Application and
knows the contents thereof, and that the same are true to the best of her knowledge and
belief.
NORDST
SUBSCRIBED AND SWORN TO beture me, a notary public of the state of ldaho,
this 3d day of June2020.
Notary Public for ldaho
Residing al: btse
My commission expires b/g/&ut
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APPLICATION - 6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 3d day of June 2020 I served a true and conect
copy of foregoing APPLICATION upon the following named parties by the mehod
indicated below, and addressed to the following:
Oryhee County
Angela Barkell
Clerk of the District Court
Ex-fficio Auditor & Recorder
PO Box 128
Murphy, ldaho 83650
_Hand Delivered
U.S. Mail
_Ovemight Mail
_FA)(X Email [e-mail]
ra Holmes,
Legal Adm inistrative Assistant
APPLICATION - 7
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DS: KF SGALE: 1'= 500'DATE: 0S0d2020 HEMINGWAY SUBSTATION
OWYHEE COUNry, IDAHO
SEC. 11,T.1S, R.3W, B.M
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An IDACORP Compsy
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SHT: 'l / 1 WO. NO.:27405025SV:
lnstrument # 302621
MURP}IY OWYHEE, IOAHO2020-o2-1a 004951 No ofPases 4
Recorded lor IDAHO POWER
ANGEI.A BARKELL FCE $15.00
Ex.Off'cio Recordor Deputy: HLR
lndar To DEED WARRANTY'
Elec-tronically Recorded by Simplifile
SPECIAL WARRANW DEED
ln consideration of Ten Dollars ($10.00) and other good and valuable comiderataon,
the receipt of which is hereby acknorledged, ldaho Powsr Company, an ldaho
corporation, ("Gnnto/) does hereby oonvey to the Gounty of Owyhee ("Gnnbe')
whose address is 20381 lD78 Murphy, ldaho the following described real property in
Orvyhce County, ldaho:
See Legal Deccripllon lot forth ln Exhlblt A rttrched hereto and made a part
heruof.
RESERVING UNTO GRANTOR THE FOLLOWING: [Remrving any power llnc
or other eraementr in favor of ldeho Poworl
SUBJEGT TO taxeg and assessrflents, all existing easemenE, dghts of way,
reservaUone, restric'tions and encumbrancea of record, levics, U.S, patent
reservations, any existing tenancies, all zoning laue and odinances, and to any
strate of facts an accurate suruey or inspection of the property would shoy.
Grantee accepts the properg ^AS lS" subject to all latent and patent defec{s.
Grantor covenants with Granbe and its succe8sorg in interest, that Grantor is the
owner in fee simple of the premisee;that the premises are free from encumbrancos
created or suffered by Grantor, excepting those es rnay be herein set forth, and
excepting thoae of rccord, and that Grantor will wanant and defend the same from
all lawful claims of or through Grantor, but none other.
lN WITNESS WHEREOF, Grantor has executed this inskumont on this lrdlayof et, ,2020.
Slgnaturc Apperc on Followlng Prgo
ExhlbltA Dercrlption
Exhlblt B Survey
302621
lvan Sim, Director of Corporate Services
Notrry Acknowledgment
STATE OF ldaho )
)ss.County ofAda )
. On.this-lltaV *ffi*O,lelore me, -D. Kudis Funke, a Notary Public in ard for said State, petonally appeared tvan Sim, personaly
known or ldenfffied to me-to be the Cotporele Service Dlr€cifi of ld*ro Power Company, and that he executed the bregorqg instrumenl
end ad<nowledged to me hat he execuled the same h said corporation'3 nemo.
ln witnese wheraof, I have hercunto Bet my hand and affxed rny offciel seal the day and year in thiE certificate frst aborc writen
lt&rtary Seal]
Resftling
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EXHIBIT A
LEGAL DESCRIPTION
Al access arcn across a gction of &e hnctase Parccl slonu on Rccgd of Surnq- Instrus$lt
Nunbcr 167.19l rrcods ofolrytm ('ounty. Idaho bctng iiturted b tbc Southea$ v. of th
Nortbea* !.r of Sccno I l. Tomship I South. Rengc 3 l}tst. Boise l\lor&nn- mort prrticrbrly
dcscribed as follou's:
Corulaciog ar t[t Center-East l;lS corts bciq thr Soudnrtst corner of said Sur&cast r,i of
the Ngthcast ',r &our wtich ftc Erst !i of said Sccno I I beius Sout[ 89plJ'J5" Ea$ 1336.0S
fcet ttrcncc SoIh E9"13'J5" Ern.U4.00 ftct aloag thc Soutb llxc of said Soutbeas,t 1r of thc
Nortbcail % to thc POINT OF BEGINNING of said acccs ;rea tbcuce learlg sard Sotth lint
North 8"14'3.1" East I i6.i3 ftet. thce
Scr& 82'01'59' Ed 6{6.{6 &cr, thcace
North 71"01'l8" EaBt 41.96 ftrt. tbcncc
Sourh 86'51'l l" Ett,l5.{9 fcct to thc \i'cittrly RreDt-of-lVay hne of State Higbuay 78. tbmr
Sorrh l0'*l']0" Easr S8.67 ftcr dog said lftsterly Right-of-lVay lhr? ro s.rid Sulb lin uf th
Sou6ca:t y. of ttcNo,Jthsr$ ti. ttcote
North 89"1]'15" Srest 76i ll fttt rlong srid Sout[ line lo the POINT OF BEGINNDIG.
Said acceis ura ctnloiu ryosiuntel), l.9l acrcs utore or les.
PREI.'M'NARY 2s ooT tq
14878
Exhibit B
BE993p_9f rsErE-Ytilt-lol cEEYE^r ioaD accErs ft
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ROADACCESS
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IOATO FWER OOIPAiIY
FII{AL JOURTIAL EI{TilEs
FERCAccount FERcAcourto.tcrlDtfon D.tlt Crcdlt DhtrtAEorm PhotAmrntt clcdldore21200 Loes on Dlsp of Prqertyl01m0 Ebcrric Phnt ln Seilke {26188.3E1 :15011 tand & Land Ri8hB, Tnnsmisslon
PhrtAEornt lrcslptbn
26,tU438
To rcdrc he t,97 ace potd q bad wwfd b tuyhc @unty tn Fc&lrory 202o;
FEnCA€unt FERcAccountDe0slpdon D3blt Crdlt PLntAtount(8m
101000
Accumuleted Resan e
Electric Plsm ln Servlce
4L!194.00 35200 Strucures & lmprovemenB, Transnlslon
35Zm Strucures & lmprwements, Transmlsslon(41,394.m)
To reurcthe slte lmprovenenBastoEio,f,ld wtththe 1.97 ocre gorel of land fE,tvqcd'o Owyh*County in Febuary2oza