HomeMy WebLinkAbout20151005Asset Exchange Update.pdfYPecrnConp
October 5,2015
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Idaho Public Utilities Commission
472W. Washington
Boise, D 83702
Public Utility Commission of Oregon
201 High Street SE, Suite 100
Salem, OR 97301
Pacific Power
Rocky Mountain Power
PacifiCorp Transmission 35ffi*.
An IDACORP Company
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Utah Public Service Commission
Heber M. Wells Building, 4m Floor
=160 East 300 South E6
Salt Lake City, UT 841I I HH,at,
Washington Utilities and Transportation C@p
1300 S. Evergreen Park Drive S.W. f"f
P.O. Box 47250 '-.-
Olympia, WA 98504 -7250 attt >
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Public Service Commission of Wyoming z-
2515 Warren Avenue, Suite 300
Cheyenne, WY 82002
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RE: PacifiCorp-Idaho Power Asset Exchange Update
Case Nos. PAC-E-14-11 and IPC-E-14-41
In December2}l4,PacifiCorpl and Idaho Power Company filed applications with each of their
state commissions and Federal Energy Regulatory Commission (FERC) for approval of an
exchange of certain transmission assets. PacifiCorp and Idatro Power are pleased to noti$ the
commissions that they have now obtained necessary approvals, with the docket numbers and the
approval dates shown below.
FERC-DocketNos. ECl5-54-000, ERl5-683-000, ERl5-686-000, ERl5-680-000, and
ERI 5-68 l -000-June 17, 2015
California-Application (A.)l 4-12-022-August 27, 201 5
Idatro{ase Nos. PAC-E-I4-I I and IPC-E-14-41-June 5,2015
Oregon-Docket No. UP 315-June 9,2015
Utatr-Docket No. I 4-03 5- I 5 0-Notice; No commission approval required
Washington-Docket UE- 1 44 I 36-.September 24, 201 5
Wyoming-Docket Nos. 20000-465-EA- I 4 and 20005-35-EA- I 4-August 7, 20 I 5
PacifiCorp and Idaho Power plan to close the transaction on October 30, 2015. This will allow
the companies to begin operating under the new agreements by November 4,2015.
Within 60 days after closing, there will be a net book value true-up and the companies will
provide final accounting entries to FERC and the Oregon, Washington, and Wyoming state
commissions as required by the approval orders. PacifiCorp and Idatro Power recently became
aware of guidance issued by the Internal Revenue Service (IRS) relating to $1031 tax-deferred
I PacifiCorp does business in Californi4 Oregon, and Washington as Pacific Power and in Idatro, Utah, and
Wyoming as Rocky Mountain Power.
Pacifi Corp-Idaho Power Assst Exchange Update
Octobcr 5,2015
Pagc2
likc.kind orctraagc tansactions ($1031 Exchaage). The IRS advised utillty tarqa)rers who arc
parties to a $1031 Exchange to recrove the taxdepreciation-relatod accuurulated defcrrd income
tax liability (AD[D assooiatod with the cxchanged assets from rate basc to avoid non-
compliance with erdsting IRS normalization rcquireinents. PacifiCorp, Idatro Power, and their
respectivc cxtcrnal auditors and tax advisors agree that the ftral accounting for the associated
transmission asset exchmge will rcquire cntics to comply with the now IRS guidance. The
cxpcotd practical effect oftho artics will be an incteasc ofrate basc resulting from thc rcrnoval
of ADIT related to the exctranged assots, and no change to the calculation of the income tax
provision for regulatory or financial accounting purpos€s. Thesc mticipated enties will be
reflestod in ttre final accounting enties associatod with the trmsaction, and wil be fild with
FERC and certain state commissions as rcquircd in the final orders ap,proviqg the transaction.
For questions rcgarding this matter, ploase contast Bryce Dalley at Pacific Power, JeffLars€o at
Rocky Mormtain Power, or Tim Tatum at Idaho Power. Our contact infonnation is shown
bclow.
Sincerely,
BryccDallcY K l^ars€rl
Vicc Presidc,nt,
PacificPower
503-E136389
Vicc hcsidcut, Rcgulation
RockyMountain Powcr
80t-2204497
Gcneral Manager, Rcgulatory
Affairs
ldaho PorverCompany
208-388-5s1s