20070619Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:JUNE 12, 2007
SUBJECT:CASE NO. PAC-07-
JOINT APPLICATION OF FALL RIVER RURAL ELECTRIC
COOPERA TIVE, INC. AND ROCKY MOUNTAIN POWER FOR AN
ORDER APPROVING THE SALE AND TRANSFER OF PROPERTY
On June 5, 2007, Fall River Rural Electric Cooperative, Inc. (Fall River) and Rocky
Mountain Power (Rocky Mountain) filed a joint Application requesting approval of the sale and
transfer of property from Rocky Mountain to Fall River. Fall River is a rural electric cooperative
that provides service for its members in and around the City of Driggs, Idaho. Rocky Mountain
is a public utility subject to regulation by the Commission and provides service in southeastern
Idaho, including in an area immediately adjacent to Fall River s existing service territory. The
Application states that both companies have provided service to customers in the Teton County
Basin, and as the Basin experiences growth, the potential for the duplication of facilities
increases, presenting planning and operational issues for both companies. Accordingly, the
parties reached an agreement to transfer certain electric facilities from Rocky Mountain to Fall
River, along with a service territory that would affect approximately 150 customers of Rocky
Mountain.
The Application states that the agreement is in the public interest because of the
closer proximity of Fall River facilities to the affected customers. The Application also asserts
that the transfer will not increase rates for the affected customers because Fall River has agreed
to serve the customers under Rocky Mountain s rate structure for a period of five years. The
Application also states that the transfer is consistent with the Idaho Electric Supplier
DECISION MEMORANDUM
Stabilization Act, which is intended to promote harmony among and between electric suppliers
and to discourage duplication of electric facilities.
The parties request that their Application be processed by Modified Procedure. Staff
recommends that the joint Application of Rocky Mountain Power and Fall River for a transfer of
assets be processed by Modified Procedure.
COMMISSION DECISION
Should the joint Application of Rocky Mountain Power and Fall River Rural Electric
for the sale and transfer of property by processed by Modified Procedure?
Weldon Stutzman
blslM:PAC-O7-12 ws
DECISION MEMORANDUM