20230720Final_Order_No_35854.pdf

ORDER NO. 35854 1

Office of the Secretary
Service Date
July 20, 2023

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR AN
ORDER APPROVING THE TRANSFER OF
CERTAIN ASSETS ASSOCIATED WITH
RITTER ISLAND
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CASE NO. IPC-E-23-07

ORDER NO. 35854

On March 2, 2023, Idaho Power Company (“Company”), and the Idaho Department of
Parks and Recreation (“IDPR”) (together the “Parties”) applied to the Idaho Public Utilities
Commission (“Commission”) for approval of an asset transfer between the Company and IDPR
(“Application”). As proposed, the Company would transfer approximately 1.09 acres of land on
Ritter Island (“Ritter Island Parcel”) located in Gooding County, Idaho to IDPR.
On March 22, 2023, the Commission issued a Notice of Application, Notice of Modified
Procedure, and Notice of Telephonic Hearing. Order No. 35711. The Commission held a
telephonic hearing on May 11, 2023. No members of the public testified. The Commission Staff
(“Staff”) filed comments supporting the Application. One written public comment was received.
The Company did not file any reply comments. Based on our review of the record, the Commission
now issues this final Order approving the Company’s Application.
BACKGROUND
Ritter Island is located south of Hagerman, Idaho on the Snake River in an area known as
Thousand Springs. The Company acquired approximately 1.09 acres of land on Ritter Island in
1989 as part of a mitigation requirement from the Federal Energy Regulatory Commission
(“FERC”). At the time, the property owned by the Company was part of a portion of land referred
to collectively as the Thousand Springs Project (“TSP”); the TSP was owned by The Nature
Conservancy (“TNC”). The Company cooperated with TNC in TNC’s purchase of the TSP.
Accordingly, TNC conveyed two homesites and certain conservation easements to the Company.
TNC later sold the TSP property to IDPR. The Company retained its easements and homesites.
THE APPLICATION
The Company stated that the proposed conveyance was part of negotiations that led to the
FERC relicensing of the Company’s mid-Snake hydro facilities. IDPR asked the Company to
transfer the Ritter Island Parcel to IDPR in exchange for supporting the Company’s plan to buy

ORDER NO. 35854 2

lands around the mid-Snake hydro facilities to meet the FERC’s aquatic habitat migration
requirements. If the transfer is approved, the Company would still be able to utilize the
conservation easements while addressing its aquatic habitat mitigation efforts.
The Company stated IDPR would be receiving this conveyance as part of a settlement at
no cost. Section IV of the Application noted that $504,985.48—the original cost of the parcel—
would be removed from FERC Account 101, Electric Plant-in-Service; this would be accounted
for by a corresponding offset to FERC Account 426.1, Donations.
The Company stated that it is compliant with the three prongs of Idaho Code § 61-328(3)
regarding asset transfers. The Company stated (1) the conveyance is in the public interest because
the Company would otherwise have had to engage in costlier alternatives to obtain its mid-Snake
hydro facility licenses; (2) the conveyance thus avoided an increase in the Company’s costs and
customers’ subsequent rates; and (3) IDPR is a governmental entity that will be able to competently
maintain its service to the public.
THE COMMENTS
a. Staff Comments
Staff evaluated the Company’s Application under Idaho Code § 61-328(3). Staff believed
that the proposed asset transfer promotes the public interest because otherwise the Company would
need to seek costlier alternatives to meet FERC requirements. Staff believed that the transfer will
not increase the Customer’s rates because the land would be removed from rate base as a donation
as described above. Finally, Staff believed that IDPR has the bona fide intent and financial ability
to maintain the property because it is already maintaining the remaining land on Ritter Island.
Accordingly, Staff believed the proposed asset transfer complies with Idaho Code § 61-328.
Staff believed that the asset transfer is more cost-effective than the Company’s foreseeable
alternatives. The original cost of the Ritter Island Parcel was $504,985.48. Staff noted that the
Company stated that, were it not for the option of transferring the Ritter Island Parcel, the Company
would have had to acquire other land (costing at least $2 million) to fulfill FERC’s mitigation
requirements for the Company. If the Company could not find an acceptable parcel to fulfill
FERC’s requirements, the Company’s other option was to engage in run-of-river operations for
the mid-Snake hydro facilities—which the Company estimated would cost $8.4 million annually.
Accordingly, Staff agreed with the Company that the transfer of the Ritter Island Parcel was the
most cost-effective path forward.

ORDER NO. 35854 3

b. Public Comment
One public comment was filed on April 17, 2023. In this Comment, concerns were raised
that the transfer of the Ritter Island Parcel would be viewed, in the Company’s accounting metrics,
as a loss. It was argued that such a loss would then be used as justification by the Company to
unnecessarily raise rates.
COMMISSION FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Idaho Code § 61-328. The
Commission has reviewed the record, including the Application and comments. Specifically, as
required by Idaho Code § 61-328(3), the Commission finds that the asset transfer is consistent
with the public interest, will not increase the cost of rates for supplying service, and IDPR has the
bona fide intent and financial ability to operate and maintain the relevant assets subject to transfer.
The Commission also finds that reasons for approving this asset transfer are consistent with this
Commission’s relational in prior orders. Accordingly, we find it reasonable to approve the
Application.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application is approved. The transfer of
the Ritter Island Parcel from the Company to IDPR is approved, effective upon the issuance date
of this Order.
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 regarding any matter
decided in 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.
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ORDER NO. 35854 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20th day of
July 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-23-07 Ritter\orders\IPCE2307_Final_md.docx