20160108notice_of_application_order_no_33446.pdf

Office of the Secretary
Service Date
January 8.2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PACIFICORP DBA )
ROCKY MOUNTAIN POWER’S )CASE NO.PAC-E-15-15
APPLICATION TO APPROVE THE ASSET )
PURCHASE AGREEMENT BETWEEN )NOTICE OF APPLICATION
ROCKY MOUNTAIN POWER AND THE )
CiTY OF IDAHO FALLS.)NOTICE OF
)MODIFIED PROCEDURE
)
)ORDER NO.33446
___________________________________________________________
)
On December 8,2015,PacifiCorp dba Rocky Mountain Power filed an Application
requesting authority to sell/transfer to the City of idaho Falls certain service territory and
associated electric facilities currently owned and utilized by the Company to provide electric
service to the Fielding cemetery.a city-owned facility.In the Application.Rocky Mountain and
Idaho Falls (“the Parties”)request that the Commission approve a proposed Asset Allocation
Agreement”that the Parties shall subsequently execute.The terms of the proposed Agreement
are said to conform with a 2005 Agreement between the Parties relating to service areas and
future transactions,which was previously approved by the Commission.Rocky Mountain asks
the Commission to process the Application by Modified Procedure.
BACKGROUND
This Application falls under the Electric Supplier Stabilization Act (ESSA),Idaho
Code §61-332 eiseq.The purpose of the ESSA is to:(1)promote harmony between electric
suppliers;(2)prohibit the “pirating”of consumers;(3)discourage duplication of electric
facilities;(4)actively supervise the conduct of electric suppliers;and (5)stabilize service
territories and consumers.
Generally,the ESSA prohibits an electric supplier (e.g.,a utility,municipality,or co
op)from serving another electric supplier’s existing or former customers.Idaho Code §61-
332B.As an exception to this general rule,the ESSA allows electric suppliers to contract for the
purpose of “allocating territories,consumers.and future consumers ...and designating which
territories and consumers are to be served by which contracting electric supplier.”Idaho Code §
61-333(1).Such contracts must be submitted to the Commission for approval.Id.In sum,
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NOTICE OF MODIFIEI)PROCEDURE
ORDER NO.33446
contracts reviewed under the ESSA will be approved if after notice and opportunity for hearing.
the Commission finds that the agreement conforms with the purposes of the ESSA.See Idaho
‘9Code§6l-i(l)and 61-ii4B(l).
In August 2005,the Company and the City entered into an agreement entitled as
“Idaho Falls Allocation Agreement”(the 2005 Agreement”).The 2005 Agreement was
intended “to reduce duplication of service and promote stability of their respective service
areas.”Application at 2;Exh.1.It specifies,among other things,“that the Company would not
provide electric service to any new customers within the City’s boundaries and the City would
not provide electric service to any new customers outside of its municipal boundaries.”Id.
The 2005 Agreement also allows for the transfer of customer services between the
Parties so long as the customer being served provides a written request to transfer service,the
power suppliers agree to the transfer,and the new electric supplier agrees to pay for lost
revenues and any facilities utilized by the other party to serve that customer.The Commission
approved the 2005 Agreement pursuant to the provisions of the ESSA.Order No.29895.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Parties have agreed to the transfer of the
service area of one customer (Fielding cemetery)and certain assets (poles,wires,cross arms,
insulators,guys and other facilities)from the Company to the City.The Application contains the
Parties’proposed transfer agreement (“Asset Purchase Agreement”).Exh.2.
YOU ARE FURTHER NOTIFIED that the Parties state that Fielding cemetery has
provided a written request to transfer its electric service from Rocky Mountain to Idaho Falls.In
exchange for the service area and certain assets,Idaho Falls has agreed to pay Rocky Mountain
167%of the customer’s previous 12 months electric bills (for lost revenue),the cost of the
transferred assets (adjusted for age and serviceability)and associated legal and transaction costs.
The agreed-upon total purchase price is $49,321.61.Exh.D.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission finds that the public interest
may not require a formal evidentiary hearing in this matter and that it will proceed under
Modified Procedure pursuant to the Commission’s Rules of Procedure 201 through 204,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written
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ORDER NO.33446 2
comments have proven to be an effective means for obtaining public input and participation in
cases of this nature.
YOU ARE FURTHER NOTIFIED that anyone wanting to state a position on this
Application may file a written,supporting or opposing comment with the Commission no later
than 21 days from the service date of this Order.The comment must explain why the
commenter supports or opposes the Application.Persons who want a hearing must specifically
ask for a hearing in their written comments.Written comments concerning the Application shall
be mailed to the Commission and the Parties at the addresses reflected below:
Commission Secretary Daniel E.Solander
Idaho Public Utilities Commission Ted Weston
P0 Box 83720 Rocky Mountain Power
Boise,ID 83720-0074 1407 W.North Temple,Suite 330
Salt Lake City,UT 84116
Street Address for Express Mail:E-mail:[e-mail]
ted.westonpacificorp.coni
472 W.Washington Street
Boise,ID 83702-59 1 8 Janice Flowers
Idaho Falls City Power
P0 Box 50220
140 S.Capital Avenue
Idaho Falls,ID 83405
E-mail:ifpinfo1ifpower.org
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.puc.idaho.gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.These comments must also be sent to the Company and
the City of Idaho Falls at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that the Company and the City may file reply
comments,if any,within 28 days from the service date of this Order.
YOU ARE FURTHER NOTIFIED that the Application and exhibits have been filed
with the Commission and are available for public inspection during regular business hours at the
Commission offices.The Application and exhibits are also available on the Commission’s web
site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the page,scroll down to
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ORDER NO.33446 3
the type of Open Electric Cases”and then click on the case number as shown on the front of
this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §6 1-333,et seq.The Commission may enter any final Order consistent with its
authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000,etseq.
ORDER
IT IS HEREBY ORDERED that this matter be processed under Modified Procedure,
IDAPA 31.0l,01.201-.204.Persons interested in filing written comments regarding this matter
should do so no later than 21 days from the service date of this Order.
IT IS FURTHER ORDERED that reply comments by Rocky Mountain and the City,
if any,shall be due no later than 28 days from the service date of this Order.
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ORDER NO.33446 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this day
of January 2016.
PAUL KJ LAND ,PRESIDENT
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KRI TINE RAPER,CO MISSIONER
ERIC ANDERSON,COMMISSIONER
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