20070725final_order_no_30381.pdf

Office of the Secretary
Service Date
July 25, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF FALL RIVER RURAL
ELECTRIC COOPERATIVE, INC. AND
ROCKY MOUNTAIN POWER FOR AN
ORDER APPROVING THE SALE AND
TRANSFER OF PROPERTY
ORDER NO. 30381
CASE NO. PAC-07-
On June 5 , 2007 , Fall River Rural Electric Cooperative, Inc. (Fall River) and Rocky
Mountain Power (Rocky Mountain) filed a Joint Application requesting Commission approval of
the sale and transfer of property from Rocky Mountain to Fall River. Rocky Mountain is a
regulated electric utility that provides service to approximately 67 000 customers in southeastern
Idaho. Approximately 150 ofthose customers reside in Teton County. The proposed transaction
involves the transfer of 72 customers from Rocky Mountain to Fall River.
Fall River is a non-profit cooperative electric utility that provides service to
approximately 13 000 customers in Idaho, Montana and Wyoming.Fall River serves
approximately 5 400 customers in and around Driggs, Idaho. The proposed transfer would
include facilities to serve the transferred customers and a portion of the certificated service area
of Rocky Mountain to Fall River. On June 25, 2007, the Commission filed a Notice of Joint
Application and Notice of Modified Procedure to process the Application.
Staff reviewed the Application and additional information provided by the companies
pursuant to discovery requests, and filed written comments on June 16, 2007. Idaho statute
requires the Commission when considering the sale or transfer of any public utility property to
determine if (1) the transaction is consistent with the public interest, (2) the cost and rates for
supplying service will not increase because of the transaction, and (3) the buyer of the electric
utility s property has both the intent and financial ability to operate the property in the public
servIce. See Idaho Code ~ 61-328. Staff also reviewed the Application to ensure that it
complies with the requirements of the Idaho Electric Suppliers Stabilization Act (ESSA). The
purpose of the ESSA is to discourage duplication of facilities, prohibit the pirating of customers
and stabilize service territories and consumers and promote harmony between electric suppliers.
See Idaho Code~ 61-322(4).
ORDER NO. 30381
Staff in its comments reviewed the evidence provided by the companies and
determined that the proposed transfer is consistent with Idaho Code ~ 61-328 and the ESSA.
Based on additional information provided by Fall River, Staff believes service reliability will
improve with the transfer to Fall River. Staff also determined the rates for customers will not
increase as a result of the transfer. Fall River has agreed to leave the Rocky Mountain rates in
place for the former customers for five years, and also agreed with Staff s recommendation that
the 72 Rocky Mountain customers that are being transferred be allowed to choose between
retaining their current rates or switching to Fall River rates. In addition, 22 of the transferred
customers are billed under a time-of-day rate structure. Fall River has agreed to establish a
similar time-of-day rate structure for those customers and to read and record the customers
meter readings by hand to provide the appropriate rate information to those customers.
Finally, Staff reviewed whether Fall River has the intent and financial ability to
operate the property in the public service. Fall River has been in existence since 1938 and has
been providing reliable service to its customerS. We find Fall River has the ability and intent to
operate the transferred property in the public interest.
Based upon the record in this case, the Commission approves the asset purchase
agreement as filed by Rocky Mountain and Fall River, and directs that the transferred customers
be allowed to remain under the Rocky Mountain rate structure for five years or to switch to Fall
River s rates.
ORDER
IT IS HEREBY ORDERED that the Joint Application of Fall River Rural Electric
and Rocky Mountain requesting approval for the sale and transfer of property from Rocky
Mountain Power to Fall River is approved. We direct Fall River to allow the transferred
customers to retain the Rocky Mountain rate structure or to switch to Fall River s rates any time
within the next five years.
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. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30381
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;J.~
day of July 2007.
Commissioner Smith Out of the Office
MARSHA H. SMITH, COMMISSIONER
~ ct~SSIONER
ATTEST:
Co mission Secretary
bls/O:PAC-O7-ws2
ORDER NO. 30381