20200702Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMNdISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORI\EY GENERAL
DATE: JULY 1,2020
ST]BJECT:IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR
AN ORDER APPROVING THE TRANSFER OF CERTAIN ASSETS
ASSOCIATED WITH THE IIEMINGWAY SUBSTATION; CASE NO.IPC.
E.-20-25
On June 3,2020,Idaho Power Company ("Company") applied to the Commission for an
order approving the Company's transfer of a 1.91-acre parcel of land in Owyhee County, Idaho
(the "Parcel") to Owyhee County (the "County"). The Company submitted its Application
pursuant to ldaho Code 5 6I-328 and requested its Application be processed by Modified
Procedure.
BACKGROUND
In 2008, the Company purchased 150 acres of land near Melba, Idaho that would later
become the site of the Hemingway Substation ("Substation"). The Company constructed a new,
unpaved access road on a portion of the 150 acres to provide access from Highway 78 to the
Substation. The Company's access road travels parallel to and partly crosses the Wilson Cemetery
Road. Ever since the Company's access road was constructed, visitors of the Wilson Cemetery
and adjacent property owners have begun using the Company's road rather than the Wilson
Cemetery Road. The Wilson Cemetery Road is now overgrown and impassable.
In July 2019, the County denied a building permit for one resident along the south of
Wilson Cemetery Road because the resident could not prove public access to their property. The
County would not grant a waiver or variance upon request. On February 14,2020, to re-establish
legal access for the landowners south of Wilson Cemetery Road, the Company executed and
1DECISION MEMORANDUM
recorded a deed conveying the Parcel to the County subject to an easement reserving access for
the Company.
THE APPLICATION
The Company must obtain approval of the Commission before it sells or transfers
ownership of any property located in Idaho used in the generation, transmission, or distribution of
electricity in Idaho. Idaho code * 61-328(1). The Company',s Application states the rransfer of the
Parcel meets the requirements of ldaho Code * 6l-328(3). The Application states the original cost
of the Parcel was $26,488, but its book value with improvements is $41,394. The Company
conveyed the Parcel to the County for ten dollars. The Company will maintain access to the
Substation via an easement described in the deed. See Attachment 2.
STAFF RECOMMENDATION
Idaho Code $ 6l-328(2) states that the Commission "shall conduct a public hearing upon the
application." To fulfill this statutory requirement, Staff recommends the Commission issue a Notice of
Application, Notice of Modified Procedure, and Notice of Telephonic Hearing. Staff recommends setting
an August 25, 2020 public comment deadline, a September l, 2020 Company reply deadline, and
scheduling a telephonic hearing before public comments are due.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application, Notice of Modified Procedure, and
Notice of Telephonic Hearing setting an August 25,2020 public comment deadline, a September 1,2020
Company reply deadline, and a telephonic hearing before blic comment
ynH
Deputy Attorney General
I:Uf, gal\ELECTRIC\lPC-E-20-25\lPCE2025_dcc-dh.docx
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2DECISION MEMORANDUM