20160115Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DAPHNE HUANG
DEPUTY ATTORNEY GENERAL

DATE: JANUARY 14, 2016

SUBJECT: ROCKY MOUNTAIN POWER’S NOTICE WITHDRAWING
APPLICATION IN CASE NO. PAC-E-15-17, AND ADVISORY LETTER
On December 31, 2015, Rocky Mountain Power filed an Application to approve the
disposition of certain facilities pursuant to a purchase and transfer agreement with Navajo Tribal
Utility Authority. On January 12, 2016, Rocky Mountain filed a Notice of Withdrawal of the
Application, and Advisory Letter.
THE APPLICATION, WITHDRAWAL, AND ADVISORY LETTER
Rocky Mountain Power provides electric service to certain customers within the
Navajo Nation in San Juan County, Utah, with consent of the Nation and pursuant to Rocky
Mountain’s tariffs and regulations on file with and approved by the Public Service Commission
of Utah. Application at 2. In 1959, the Nation created the Navajo Tribal Utility Authority
(NTUA), and authorized it to provide utility service throughout the Nation. Id. at 3. Rocky
Mountain continues to provide electric service to customers within the Nation. Id. at 4.
A few times since creation of NTUA, and most recently in 2009, NTUA has
approached Rocky Mountain about acquiring the Company’s facilities used to provide service to
customers within the Nation. Id. NTUA and Rocky Mountain entered into a Purchase and
Transfer Agreement on December 4, 2013, but encountered delays in closing the agreement. Id.
at 4-5. The parties entered into the First Amendment to the Agreement, effective March 4, 2015,
and executed a Second Amendment to the Agreement on December 2, 2015. Id. at 6-7.
On December 31, 2015, Rocky Mountain filed its Application seeking this
Commission’s approval of the Agreement, citing Idaho Code § 61-328. The Application
indicates the Company will also submit approval filings to the Public Service Commission of
DECISION MEMORANDUM 2
Utah, the Wyoming Public Service Commission, and the Oregon Public Utility Commission, and
that it will file an advice letter in California. Id. at 8.
On January 12, 2016, Rocky Mountain filed a Notice of Withdrawal and Replacement
with an Advisory Letter, summarizing key information from its Application regarding the
Purchase and Transfer Agreement. Notice and Advice. The Letter’s stated purpose is to
“notify[] the Commission of the Company’s intent to dispose of certain facilities in Utah to the
[NTUA].”
STAFF RECOMMENDATION
Rocky Mountain’s Application cited Idaho Code § 61-328, regarding electric utilities
and the sale of property. Application at 5. That provision states:
No electric public utility . . . owning, controlling or operating any property
located in this state which is used in the generation, transmission, distribution
or supply of electric power and energy to the public . . . shall merge, sell,
lease, assign or transfer, directly or indirectly . . . any such property or interest
therein . . . except when authorized to do so by order of the public utilities
commission.
Idaho Code § 61-328(1) (emphasis added). Staff notes that the Agreement between Rocky
Mountain and NTUA involves the purchase and transfer of property located entirely in Utah.
Application at 2, 5. Because none of the property at issue in the Agreement is located in Idaho, §
61-328 does not apply. Section 61-328 does not require Rocky Mountain to obtain approval of
its Agreement from the Idaho Public Utilities Commission.
Staff believes that withdrawal of Rocky Mountain’s Application is appropriate.
Under Procedural Rule 68, Rocky Mountain’s Notice of Withdrawal is effective 14 days after
filing unless otherwise ordered by the Commission. IDAPA 31.01.01.068. Thus, Staff
recommends that the Commission allow the Notice to take effect on January 26, 2016.
Staff also observes that utilities are required to give notice to the Commission of any
change in rate, or any change in any “contract relating to or affecting any rate . . . .” Idaho Code
§ 61-307. Because Rocky Mountain’s Agreement with NTUA conceivably impacts rates in
Idaho, § 61-307 could be construed to require Rocky Mountain to file a Notice of its Agreement
to this Commission. Staff believes the potential impact of the Agreement is relatively minor and
best addressed as part of a future rate case, rather than through a separate case. Staff thus
recommends that the Commission acknowledge the Company’s Advisory Letter regarding its
Agreement with NTUA, without further action at this time.
DECISION MEMORANDUM 3
COMMISSION DECISION
1. Does the Commission wish to allow Rocky Mountain’s Notice of Withdrawal to
take effect under Rule 68 on January 26, 2016?
2. Does the Commission wish to acknowledge Rocky Mountain’s Advisory Letter
regarding its Agreement with NTUA without further action at this time?

/s/ Daphne Huang
Daphne Huang
Deputy Attorney General

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