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Home My WebLink About20231108Application.pdf LISA D. NORDSTROM Lead Counsel lnordstrom@idahopower.com November 8, 2023 VIA ELECTRONIC FILING Jan Noriyuki, Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg 8, Suite 201-A (83714) PO Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-23-31 In the Matter of the Application of Idaho Power Company for an Order Approving the Transfer of Certain Assets Associated with Transmission Plant Held for Future Use Dear Ms. Noriyuki: Enclosed for electronic filing please find Idaho Power Company’s Application in the above matter. If you have any questions about the attached documents, please do not hesitate to contact me. Very truly yours, Lisa D. Nordstrom LDN:sg Enclosures RECEIVED 2023 NOVEMBER 8, 2023 4:02PM IDAHO PUBLIC UTILITIES COMMISSION APPLICATION - 1 LISA D. NORDSTROM (ISB No. 5733) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 lnordstrom@idahopower.com Attorney for Idaho 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 TRANSMISSION PLANT HELD FOR FUTURE USE. ) ) ) ) ) CASE NO. IPC-E-23-31 APPLICATION Idaho Power Company (“Idaho Power” or “Company”), in accordance with Idaho Code § 61-328 and 61-524 and Rule of Procedure 52, hereby respectfully makes application to the Idaho Public Utilities Commission (“Commission”) for an order approving the conveyance of approximately 1.227 acres of land located in the McCall- Donnelly Transmission Corridor1, in Valley County, Idaho, to Robert and Barri Hamel (collectively, “the Hamels”). In support of this Application, Idaho Power asserts as follows: I. BACKGROUND 1. In 1985, the Company acquired from the Union Pacific Railroad Company 1 See Attachment 1. APPLICATION - 2 (“Union Pacific”) various strips of land associated with an abandoned railroad line in Valley County, Idaho, totaling approximately 90 acres. The intent of the land acquisition was to create a transmission corridor, the McCall-Donnelly Transmission Corridor, for a future transmission line. Therefore, Idaho Power recorded the land in Federal Energy Regulatory Commission (“FERC”) Account 105, Plant Held for Future Use. 2. Since acquiring the land from Union Pacific, the Company has been contacted by various landowners of parcels adjacent to the transmission corridor requesting to purchase the former railroad line parcels from Idaho Power. Historically, the Company has sold various parcels to landowners, retaining easements on the property that will still allow for placement of a future transmission line by Idaho Power. Recently, the Hamels communicated their interest in purchasing the strip of land adjacent to their property, approximately 1.227 acres, to farm and maintain. II. DESCRIPTION OF TRANSACTION 3. Under the proposed transaction, Idaho Power would transfer the 1.227-acre parcel to the Hamels but reserve the entire parcel of land as an easement, for a purchase price of $2,000. The land, which is encumbered by the powerline easement, is being conveyed at market value. As explained earlier, this conveyance will release the Company’s responsibility associated with land ownership to the Hamels but will allow Idaho Power to maintain the use of the land for its intended purpose. III. IDAHO CODE § 61-328 4. Pursuant to Idaho Code § 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 Idaho. 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. Idaho Code § 61-328(3). 5. The transfer of the 1.227-acre parcel in the McCall-Donnelly Transmission Corridor meets the above-stated requirements of Idaho Code § 61-328(3). The transaction is in the public interest as it relieves the Company of ownership and maintenance responsibilities of the land while still allowing for use of the land for its intended purpose, not impacting Idaho Power’s ability to provide safe, efficient, and reliable service to customers. Consequently, the cost of and rates for supplying service will not be increased by this transaction. 6. As a landowner of an adjacent parcel who is interested in farming and maintaining the land, the Hamels have the bona fide intent and financial ability to operate and maintain the land in the public service. IV. PROPOSED ACCOUNTING 7. The original cost of the 1.227 acres of land was $1,320.04. Please see Attachment 2 for the proposed journal entries associated with the transaction, including the removal of the original cost from FERC Account 105, Plant Held for Future Use. V. MODIFIED PROCEDURE 8. Idaho Power believes that a technical 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 et seq. APPLICATION - 4 VI. COMMUNICATIONS AND SERVICE OF PLEADINGS 9. Communications and service of pleadings with reference to this proceeding should be served on the following: Lisa D. Nordstrom Matt Larkin Idaho Power Company Idaho Power Company 1221 West Idaho Street (83702) 1221 West Idaho Street (83702) P.O. Box 70 P.O. Box 70 Boise, Idaho 83707 Boise, Idaho 83707 lnordstrom@idahopower.com mlarkin@idahopower.com dockets@idahopower.com VII. REQUEST FOR RELIEF 10. Idaho Power respectfully requests a Commission order authorizing the conveyance of the 1.227-acre McCall-Donnelly Transmission Corridor parcel to the Hamels consistent with the requirements of Idaho Code §61-328. DATED at Boise, Idaho, this 8th day of November 2023. LISA D. NORDSTROM Attorney for Idaho Power Company APPLICATION - 5 VERIFICATION STATE OF IDAHO ) ) ss. County of Ada ) LISA D. NORDSTROM, being duly sworn, deposes and states that she is an attorney for Idaho Power 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. LISA D. NORDSTROM SUBSCRIBED AND SWORN TO before me, a notary public of the state of Idaho, this 9th day of November 2023. Notary Public for Idaho Residing at Ada County, Idaho My commission expires:11/02/2024 APPLICATION - 6 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 8th day of November 2023 I served a true and correct copy of foregoing APPLICATION upon the following named parties by the method indicated below, and addressed to the following: Robert and Barri Hamel 143 Wilde Pl McCall, Idaho 83638 Hand Delivered X U.S. Mail Overnight Mail FAX _ Email Stacy Gust Regulatory Administrative Assistant BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-31 IDAHO POWER COMPANY ATTACHMENT 1 Real Estate Purchase and Sale Agreement BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-31 IDAHO POWER COMPANY ATTACHMENT 2 Proposed Journal Entries Account Description Debit Credit 411600 Gain on Disposition of Utility Plant 1,320.04 105000 Electric Plant Held for Future Use 1,320.04 To record retirement due to land sale 131201 Cash 2,000.00 411600 Gain on Disposition of Utility Plant 2,000.00 To record proceeds from sale 411600 Gain on Disposition of Utility Plant 30.00 131201 Cash 30.00 To record closing costs 411600 Gain on Disposition of Utility Plant 1,000.00 131201 Cash 1,000.00 To record selling costs 105000 Electric Plant Held for Future Use 660.02 411600 Gain on Disposition of Utility Plant 660.02 To record transmission line easement retained These are proposed entries, no actual expenses have been recorded. If no additional expenses are recorded, the estimated gain in account 411600 is $309.98 McCall‐Donnelly Transmission Line Land Sale Proposed Journal Entries