20070831Sale of transmission easement.pdf

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August 30, 2007
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201 South Main, Suite 2300
Salt lake City, Utah 84111
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VIA EXPRESS MAIL
Idaho Public Utilities Commission
472 W. Washington
Boise, ill 83702-5983
Attn: Jean D. Jewell
Commission Secretary
Re:Sale of Transmission Easement
The purpose of this letter is to provide notice from Rocky Mountain Power (Company) to the
Idaho Public Utilities Commission (Commission) of the planned sale of an easement over
property in Utah. The underlying property in the proposed transaction is currently accounted for
as a transmission property investment and a portion of that investment has been allocated to
Idaho and included in Idaho rate base.
Background
Rocky Mountain Power s Silver Creek Substation is located within the Summit Industrial Park in
Summit County, Utah. There is an existing roadway known as Atkinson Avenue that traverses
through the Summit Industrial Park and eventually crosses directly under Rocky Mountain
Power s 138 kV transmission lines. Summit County is interested in developing the roadway and
converting the portion of the roadway located within the transmission corridor into a cul-de-sac.
There is an existing private easement for vehicular and foot traffic that was granted to Geneva
Rock Products in 1982 for that portion of the roadway that crosses under Rocky Mountain
Power s 138 kV transmission line where the proposed cul-de-sac will be located. This existing
easement is non-transferable and it is too narrow for development of the cul-de-sac. Summit
County has expressed an interest in acquiring an appropriate easement to allow for a public
roadway and the construction of a cul-de-sac.
Transmission Easement Letter
August 30, 2007
Page 2 of3
The Company relied upon the opinion of a local broker for determining the market value of the
underlying property. The market data from the broker suggests that the land value is $3.79 per
square foot or $165 000.00 per acre. The Company targets 70 percent as the factor for easement
transactions involving a roadway, with lower factors used in extenuating circumstances or that
result from other considerations that might impact negotiations between the parties, such as the
particular location of the subject property, the potential future use of the property and its
surrounding area, and the counterparty s ability to obtain an easement through condemnation.
The Company has calculated the total easement price for the proposed public roadway to be
$28 548.86 (10 760.97 square feet x $3.79 per square foot x 0.7 = $28 548.86.
Regulatory Impacts
The location of the proposed cul-de-sac will not hinder Rocky Mountain Power s access to the
transmission lines and Company access to the transmission corridor will actually improve as a
result of the development of the cul-de-sac. The requested easement is consistent with others
that have been approved by the Company and this Commission, which do not conflict with the
transmission corridor s primary use.
Sale of the easement to Summit County will not adversely affect the Company s customers
because the sale recovers 70 percent of the value of the property and Rocky Mountain Power will
retain ownership of the property and safe access to its transmission lines. If the parties are
unable to consummate this transaction, Summjt County has the option to pursue acquisition of
this easement through eminent domain. Rocky Mountain Power is presently unaware of any
adverse impact to another utility that would result from this transaction.
The Company will meet all requirements regarding these transactions required by other public
utility commissions having jurisdiction over the Company s retail operations. A copy of filings
made with other commissions will be provided to the Commission if requested.
It is respectfully requested that all formal correspondence and staff requests regarding this matter
be addressed to one or more of the following:
By E-mail (preferred):datareq uest(fYpacifi corp. com
By fax:[phone]
By regular mail:Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
Transmission Easement Letter
August 30, 2007
Page 3 of3
Informal inquiries may be directed to:
Brian Dickman
Manager, Regulation
201 South Main, Suite 2300
Salt Lake City, UT 84111
Telephone: [phone]
Facsimile: [phone]
E-mail: Brian.Dickman~PacifiCorp.com
Justin Lee Brown
Senior Counsel
201 South Main, Suite 2300
Salt Lake City, UT 84111
Telephone: [phone]
Facsimile: [phone]
E-mail: Justin.Brown~PacifiCorp.com