20180503Application.pdf

Daniel E. Solander (lSB# 8931)
Rocky Mountain Power
1407 W. North Temple, Suite 320
Salt Lake city, utah 841l6
Telephone: [phone]
Email : daniel.solander@nacifi com.com
Attorneys for Roclqt Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE
APPLICATION FOR APPROVAL OF
THE ASSET PURCHASE
AGREEMENT BETWEEN ROCKY
MOUNTAIN POWER AND THE CITY
oF rDAHO FALLS (PIONEER DRrVE)
APPLICATION OF
ROCKY MOUNTAIN POWER
CNC}tr)5
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CASE NO. PAC-E-18-03
APPLICATION OF
ROCKY MOUNTAIN POWER
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Rocky Mountain Power, a division of PacifiCorp (the "Company"), pursuant to
provisions of the Electric Stabilization Act, I.C.$ 61-333 and I.C. $ 6l-328, hereby makes
application to the Idaho Public Utilities Commission ("Commission") for approval of the Asset
Purchase Agreement ("Agreement") between Rocky Mountain Power and the City of Idaho
Falls, ("City"). This Agreement provides for Idaho Falls to purchase certain electric facilities
currently owned and utilized by the Company to supply electric service to locations at or near
Pioneer Drive, Idaho Falls, Bonneville County, as more particularly described in the
Agreement. In support of this Application, Rocky Mountain Power states as follows:
l. Rocky Mountain Power, a division of PacifiCorp, &n Oregon Corporation,
whose address is 1407 West North Temple, Suite 320 Salt Lake City, Utah 841 I 6, is authorized
to do and is doing business in the state of Idaho. The Company provides retail electric service
to approximately 75,000 customers in the state and is subject to the jurisdiction of the
Commission. The Company's retail certificated service territory encompasses portions of
Page I
Fremont, Madison, Teton, Clark, Jefferson, Lemhi, Oneida, Bannock, Franklin, Caribou,
Butte, Bingham, Bear Lake and Bonneville counties. Rocky Mountain Power is a public utility
in the state pursuant to Idaho Code $ 6l-129.
2. Idaho Falls, which is located in Bonneville County, owns and operates an
electric power system within the municipal boundaries of the city for the convenience of its
citizens. The City's municipal service territory is surrounded by Rocky Mountain Power's
service territory. The Company currently provides electric service to one or more electric
customers located within the boundaries of the City and the City provides service to one or
more customers within the Company's service territory.
I. BACKGROUND
3. On October 9,2017, Rocky Mountain Power and the City entered into a Service
Allocation Agreement to reduce duplication of service and promote stability in their respective
service areas. On October 12,2017, the Service Allocation Agreement was filed with the
Commission and later approvedl on December 5,2017, by the Commission.
4. The Allocation Agreement specified that existing customers as of the date of
the agreement would continue to be served by their current electric supplier regardless of which
service territory the customer was located in.
5. The Allocation Agreement provides for the transfer of a customer's electric
service from one utility to the other as long as the acquiring utility agrees to pay the utility
currently providing service just compensation for lost revenues and the distribution facilities
utilized to serve that customer. The Company and the City agreed that just compensation for
lost revenues would be an amount equal to 167 percent of the total of the respective customer's
1 Case No. PAC-E-17-12, Order No. 33943
APPLICATION OF
ROCKY MOT]NTATN POWER
Page2
electric bills from the prior twelve-month period. [n addition the acquiring utility would
purchase the poles, wires, cross arrns, insulators, guys, and other facilities no longer needed or
required by the other utility to service that customer.
6. The Company and the City have agreed to transfer service and the City has
agreed to pay 167 percent of the customers' previous twelve months electric bills in addition
to purchasing the facilities described in Exhibit A to the Asset Purchase Agreement.
II. REOUEST FOR SERVICE AREA EXEMPTiON
7. Rocky Mountain Power and the city of Idaho Falls hereby jointly petition the
Commission for approval of the Asset Purchase Agreement, provided as an attachment to this
Application, and transfer of electric service, wherein Idaho Falls agrees to serve the load of the
customers described in Exhibit B to the Agreement, and pay the Company for the assets
transferred, as well as the revenue reimbursement, legal and transaction costs.
III. COMMUNICATION
8. Communications regarding this Application should be addressed to:
If to Rocky Mountain Power:
Ted Weston
Daniel E. Solander
1407 W. North Temple, Suite 330
Salt Lake City, Utah 84116
Telephone : [phone]
Fax: [phone]
Email : ted.weston@pacifi corp.com
daniel. solander@oacifi corp.com
If to the City of ldaho Falls:
Idaho Falls City Power
Janice Flowers
140 South Capital Avenue
Box50220
Idaho Falls, Idaho 83405
APPLICATION OF
ROCKY MOUNTAIN POWER
Page 3
In addition, the Company respectfully requests that all data requests regarding this matter be
addressed to one or more of the following:
IV. MODIFIED PROCEDURE
9. The Company believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under Modified
Procedure; i.e., by written submissions rather than by hearing. RP 201 et seq.If, however, the
Commission determines that a technical hearing is required, the Company stands ready for
immediate consideration of its Application and will present its testimony to support the
Application in such hearing.
V. REOUEST FOR RELIEF
WHEREFORE, Rocky Mountain Power and the city of Idaho Falls respectfully request
that the Commission: 1) process this Application under Modified Procedure; 2) issue a final
order approving the Asset Purchase Agreement; and 3) authorize the transfer of electric service
for the customers described in Exhibit B to the Agreement between Rocky Mountain Power
and the city of Idaho Falls.
DATED this 3'd day of May,20l8.
Respectfully submifted,
By e-mail (preferred)
By regular mail
APPLICATION OF
ROCKY MOLINTAIN POWER
datareq uest@pac ifi corp.com
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
By 1,fih
Daniel E. Solander
Attorney for Rocky Mountain Power
Page 4
ATTACHMENTA
ASSET PLRCHASE AGREEUENT
BETWEEN
ROCKT MOI'NTAIN POWER
AITID
CITY OF IDAHO FAIJ.S.IDA.EO
lipn.,\
'thisNssa Purchase Agreemenr (rhe 'Agrccment"). dated tt i, "ild\"y of
30lE is bshrecn the City of ldaho Falls, ldaho, a municipal corpbrarc of the Sate of
ldaho dlh/a ldaho Falls Power. ("BuyeC'); and PacifiCorp, an Orcgon corpmatbn doing business in
Utah as Rocky Mormtain Poser ('Rocky Mountain Po*er"). Rock,-Mountain Poser and Buler
are somefimes refened ro collectivel1' as "Partics'and individually as 'Parq'."
\[ HEREAS. Rocky Mountain Poner o*ns certain .{ssets locatcd in ldaho Falls,
Bonner ille Countl, ldaho, associatcd rrith sen'ing firc locarioru along Pionccr Drire, as dcscribsd in
Exhibit C attshcd to 6ris Agreement and incorporrted hcrcin: and
WHERE {S, Bu1'er has sgred to purchase the Asse8 fronr Rocky Llounuin Pourcr
and Rock3 Mountain Po*cr hercby a€irees to scllthe Assets to Buler in accordurce urth and
subject to all of the terms and conditions of sale as expressed hcreiu and
NOU'. THEREIjORIi forand ia cmsidcration ofthc mutrnl prorniscs rnd oovenants
and cordititrns set forth in 0ris Agreememt the suffrciency ofwhich is hcrc$ mutlully acknowledged
and acccprted, thc Paries hercto agree as follows:
l. Definitions.
For purposcs ofthis Agcemenu the follorving terms used herein but Dot othmvise defined
hercin shall hale the l'ollrrrvin8 rneaning when used u ith initial capitalization u'hether singuhr or
plural:
l.l "A$sets" menns those assets ouned b}' Rocky Mounuin Po*er, as set lbrth in
Errhihit A. A rnap shosing the location ofthe Asscrs is anachcd as bshibit C ofthis agreamcnl.
LI "Commissionn mcans thc ldaho Public Utilities Commission.
1.3 "Disconnect Costs' means Rocky Mountain Power's charges for disconnccting the
asscts frorn the Rckl Mountain Poser disrribution fecder. and any additioual rclated work
rcquestd b} BuY'er.
l..t "Purchase I'rice" means the price Buyer sill pay to Rock-v Mountain Power in
exchange for the Asscts- pursuant to Section 3 hercin.
1.5 "'franstbr Date" means the date upon uhich Rocky Mountain Po*er eonrc)'s to
Bul'er the bill of salc tbr the Assets and all of the Trursfened Customers slrall hecome thc cuslorners
of ldaho Falls Poner.
l. Sale and Purchase of Assctt.
2.1 Asscts to Be Sold. Subjectto all oftheterms and onditions ofthis Agreenrent, Rocky
Moutain Porver sgreer ro sell and Buyer agrees to bu.v all of Rockl' Mounain Porre/s right, title
and interest in the Assets.
Ctntotncr
Arrcl fuftrt $Ag@rt Prgc I ofl5
2.2 Purchase Price. The Purchase Prics forthe Assrts shrll be SEVENTY-
sEvEli THoUSAND EIGHT HTNDRED )INETY-TWO DOLLARS ($77.t9:).
1.3 Pavmenl The Purchase Price shall be paid to Rock.v Mountain Pourcr b5' Buyer
nithin fifteen (15) dals ofthe datethis.{greement is esccuted b1'both Parties: such payment shall
be by chcck.
2.{ lnsfiunrents of Conveyance and T[ansfgf. Subject to tlre satisftction of the
conditions prerxdent set forth in Scction E be lon,. and purstnnt to all ofthe terms and conditions of
this Agrecment Roc'k1' l{ountain Por,r'er shall executE and deliver to Buycr a bill of sale to rest in
Br4er good and mar-ketable title to the Assets. subject to no sccuriq interests liens or
encumbrances and subsantially in the form of the unexecuted bill of sale anachcd hereto as Exhibit
D.
1.5 Proration of Personal hooertv Taxes. Personal propcrt] tnxcs. if applicable. shall be
prorated benreen Rock_v Mounuin Power and Buler ts r.rf the Tnnsfer hte based upon dalr of
onnership in the tax year in n'hich the Transfer Date occun-
3.6 Sales. Transftr a$d Other Tarcs. lf applicable. an1' sales. excisc. transfer.
prrchrse" use. or similar tax nhich ma) bc palable br reason of thc sale of all or a portion of thc
Asscts shall be bome and paid b1 Bupr.
3. Olnershipi Disconrrcct Costs: Operstion and Maint$ance: Risk of Loss
3.1 Ate6ltlp. Rocky Mountain Pouer shalloun the Assers untilthe Translbr DaE.
3.: Ooe,,ration and Maintsrance: Risk of Loss. .{fter dre Transfer Darc, Bulcr shrll own
and be solely ruponsible for the opercion and maintenance ofthe Assets and risk of loss of the
Assc6. Prior to the transtbr dnte- Rockl Mountrin Power shall be responsibh fu the opention and
maintcnance ofthe Assets. For the life of thc Asscts, Buler shall at alltimes operatc ard maintain
the Assets in ascordance rvith prudcnt utility practice.
3.3 Disconnect Costs. Buyer shall pal'Rocky' ttlounrain Poser all Disconnect Costs
including marcrials, labor, and applicable orcrtcads. for the installation operatiott rnd maintemnce.
of all facilities that Rocky I'lountain Porrer determincs are rea$)nebl;- necessary to separate the
connection betw'ccn the Asscts ond Rocky'!\rlountain Posefs distribution system. Bu1'er shall
coordinate operrtions with Rccky Mountain Pouer to this end. Brryer may rEquest that Rockl
Mountain Power pertbrm additional u'ork necessa[ to r€connect the Assets to Buyeds onn
disibution tl=der. and any such work performcd shail bc rs spccifically agrccd by tlrc Partics in a
separate n ritten agreement. and the charges for such norL shall be dccmed Disconnect Coss for
purposss ofthis Agreernent onl,r.
4. Regn*entations and ll'arrantielgf Rockl lMountain Poucr.
Rocky Mountain Power rcPrescnts and warrants as follons:
4.1 OrFnizdion and Porvcrs of fuEky Mounain Foscr. Rocky Mountain Pouer isan
Onegon Gorpor*iol. dull organized aod ralid[ existing undcr the laws ofthe State of Orcgon. and
(.Mxr
Arier fudEcAttffinl Pogc 2 of l5
is du! qrnlified to do business in thc Strrc of ldaho. Rocky Mountain Ponrcr has all requisite po$€r
and authorit,'to own the Assets.
4.1 .tu6oritv Relative to Acreenrent Govemmcntal Authorizrtion. Rocky' Mountain
Pouer has the pouer and authoriq'to exccute and delivcr fiis Agreeraent and to consummate dre
transactions contemplated hereby. This Agreement hrs boen duly and validly authorized and
constitutes the valid and binding obligation of Rocky Mountain Power enforceable in uccordancc
u,ith its terms. exoept as enflorccment ma). bc limited by applicable bankruptcy- insolvency,
reorganizetioru moratoriurn or similar larrs aftcting the enforcemsrt of crditors rights generall-v-
and orcept that the availability of the equitablc remcdics of specifrc performance and injunctive relief
are subject to the discrction ofthe court befor€ which any procec{ing nray be brought. No
declaration" filing or rcgistration with. or notice to. or authorizatioru eonscnt or approval of. an1'
gonemmentrl c rcgulaory body or authority is neoc$ary forthe fiecution and delivcrl of this
Agrrcment by Rocky Mountain Power or dre consummathn b1 Rocky Mountain Po$er ofthc
transactions contcnrplated by this Agrcemcot, porided that Rakl Mountain Porver makes no
rcprcsentation or rvilranq with rcspcct to apprwals rrhhh ma1 be rrquired from the ldaho Public
Utilities Commission or the Federal Enerp' Regulatory Commission.
.1.3 Non{ontravention: Apororals. Ttp exccution and delivcrl of this.A.grrement and
thc consummaition ofthc transastions contemplatcd hereby will not violatq conflict with or result
in a breach of eny pruvision of, or constitrte a defeult under. or res,rlt in the termination of any
note. h)nd. mortga$e. indenture. dced oftnrst, Dofltrrct lease or olher instnrmenu obligption or
aguemcnt of any,kind to which Rocky Mountnin Poner is now a Party or by vrhich any of its
e$scts may bc bound or affcctcd.
4.4 Title to the Assets. Rockf Mounuin Powrr lus Sood and rnarlcetEble title tn the Asscts
fiee and clear of all licns, mortgrges, pledges. claims. chargeq securiry interests or other
encumbrances.
4.5 Condirion ofAsscts. The Asscs will be sold to Buycr nAS IS, WHERE IS." Rockl
Mountain Pon'er hercby disclaims and excludes hereftum, (a) any e\press or implicd rcprescntation
or $atrant1. asto the ralue. conditioru dcsign, operation. or qualiS of the msErials or wortmanship
in. or anl defects in, the Assets, (b) any cxpress or implied uarang of nrcrchanability or fitncss for
usc or for a particulsr purpose. or (c) auy cxp(css or implicd rcprcsentetion, gusrantec, obligation,
liabilit; or warant]- of Rocky Mountain Power, e:tpres or implicd. of any kind. arising by law or
fiun coursc ofperfomnncc. coursc ofdcaling 6l usaBe of trade.
5. Rcpresentntions and Wanantigs of Buycr.
Buler represants and wuranrc as folloss:
5.1 OrEaFization and Powers of Buyq. Buyer is duly qrulificd to do business in the
Statc of ldaho. Bu.v-er has all rcnuisite power and au$torirl to o$n the Asses.
5.2 Authoritv Rclative to Aqllernent Gorcrnmcntal Authorization. Buyer has the
po*er ad arrdrority to erccutc and delivcr this Agrcenrcm and b GomummaE thc transactions
contcmplamd hcreby. This Agrccmcnt has been duly ald ralidly authorid and constitues the
valid and binding obligilim of Buyer enforcable in accordrnce x-ith itsterms, except as
enforcemcnt mry bc limited by applicable banlauptcl-. insolvurcy, rcorgrnization, moratorium or
similar laws affccting thc cnforccment of credirors' rights genenlll and errcept that the availabililv
hr3of15Cngorr
Arsct Rrcterc egrrarnt
of the equitable rcrnedies of spccific perlbrmsncc and injunctive relief erc subjcct to the discretion
oftre court before which any proceeding ma1 bc bruught. No der:laration, filing or rcgismtion
with, or notice to, or authorization- consent or approral of. any"govemmental or regulatory bod.r, or
authority is necrssary for thc cxe'cution and delivery of tlris Agreement by Buler or the
consummation by Bu1'cr ofthe transar:tions contemplated h1 this Agreement" provided that Buler
makes no reprpsentation or $anant)' with rcspect to EppflDt'als s'hich may bc rcquircd from the
ldaho Public Utilities Commission or he Federal F.nergr Regulatory Commission.
5.3 Non-Con$avention: Apgrovals. Tlre execution and delivery ofthis Agreement and
the congummation of thc transactions contemplatd hercb1 till notviolatc, conflictwith orresult in
a breach of any provision ot- or constitute a default under. or result in the tcrmination of any notc,
bond" mortglge indenture. deed oftrus. contrct lease or o0rer instnrmenq obligrtion or agleement
of any kind to wtrich Buycr is now a Partr or b1' which an3' of lts asscB may bc bound or affecrd.
5.4 _estdilies-ef$Ssgg. Thc.lsscts will be purchased ['Buycr "AS IS. WHERE IS.'
Bulu acknowldges 0rat Rocky lvlotmtain Power disclaims and excludcs herefr,om- (a) any erprss
or implied rcprcsentation or $arrant] as to the ralrrc. condition. design, operation. or qualiS of thc
materials or u-orkmanship in, or m) defects in, the Assat\ (b) rny exprcss or implied warranty of
merphantability or fitncss for usc or for a particulrr purpose. or (c) any exprcss or implied
rcprcsentation, gutrantca obliption, liability or nananty of Roclq'Mountain Powcr, express or
implied, of any kind, arising by latr or from cc\llrlE of perbrmurce. oourse of dealing. or usnge of
trdc.
6. Covenants of Rocky Mountain Pouer.
Rocky Mountain Pot'er covcnanas ond agnrs as follous:
6.1 Conduct of Business. Rrxkl' \lountain Rrner slull orrn and opcrate the Asscts for
the time perids set forth in S*tion 3 herrin in accordance uith its past practiccs and shall eng&ge
in no material transagtions relating to the Assets out ofthe ordinary course of businesq including
cntering into any contract or fimncing snangemcnt ftat limits Rocky Mountain PoueCs ability to
sell the Assets to Bu1er.
6.2 Insurance. Llntit the Transfer Dare. Rockl lllountain Pos'er shalt continue to self-
insurc or car6' insurancc currcntly in e{fect rclatcd to the Ass€ts, adequate to insrre thc AssEc
qpinst loss or damage by firc and uher risks and public liability consistent rvith cnd in
oeordance rvith its past practices.
63 Ressomble Efforts. Subjtxtto tlre tcrms trf this Agrcerncnt and fiduciul
obligrtitrns under applicabh las. Rod$' Mountain Porer shell use comrnercially rE sonEble ctrorts
to cftctuatc thc uansaaions coirtcrnplalcd h this Agrcemcnt and to tirlfill all ot'the conditions of
thc Prrtkrs' obligltiorc under this {grcement and shall do all such acc rnd things as rcasonably
rnsy h requird to carr1' urt Rocky Moutfiin Foser's ohligations horeunder and o cornplae thc
transostion crmtemplated I this Agpeernent.
6.4 Notification. Rocky Mountain Power sill girc Buycr prompt nritten nothe ofanl'
cvent, coodilior or fact erising priorb thc Tnnsfer Ddc drat urculd cause an1 of its
rcprcsenUhns and *amanties in 6is Agfeernenl to be untru€ in enl'matcrial l€spect.
Curtmcr
.\rsa Purclucc ..lgrccrrrcttt Prgr 4 of l5
6.5 Access to Assct* Until tlr'fransfcr Date. Rcrcky Mounuin Power shall allow
Buyer and its authorizcd agsnts and rcpncsentatives reasonable access to the Asscts.
7. Covenants ofBuver.
Buyer covenants and agrees as follows:
7.1 Conduct of Business. Prior to the Transfer Drte, Buyer shall operate the Assets for
the time periods set forfi in Section 3 hcrein in eccordancc rvith Rockl' Mountain Pou.et's
instructions. if any. and Rocky Mountain PoweCs pest practiccs. Prior to the Transfer Data Bulcr
shall engagc in no material transactions rclating to the salc or disposition ofthe Assets in whoh or
in part.
7.7 lnsurance. .{fterthcTransfer Darc. Bulrr slrall carr} insurance or liabilitl
corerage adequate to insure thc Asscis u8ainst los or damage b1 firc and other risks and public
liabilit,'consistent with and inaccordance uith is ps-st practices for like asscts.
7.3 Reasonable Efforts. Suhject to the erms ofthis Agrcement and fiduciarl otrligstitms
undcr applicable las. Buyer shall use commcrcially' reasonable effora to efuttaletlrc transactions
contemplated hy this Agreerncnt and to fulfill dl of the conditions ofthe Parties'obligrtions under
this Agreanent ard shall do all such ecu and things as rramnabll may be requircd to carr)'out
Bu,r,er's obligations hercunder and o complac thetransrtion comcmplatcd by this A$GenHlt.
7.4 Notification. Buycr uill glre Rmk3,Mountain Poter prompt nritcn notice of
any svenl condition rr frct arising prior to the Trrnsfer Date thd would cause ary of is
rcprescntatiorrs urd uarranties in this Agreerncnt to be untrue in an-v material rcspect.
7.5 Indemnit). Buyer shall dcftod. irdemnity. and hold harmless Rocky Mountain
Power, its officerq dircctors, emplqrces. and agcnts, tiom and agrinst any and ell liabilitli loss,
damagc. claims. suit or cause of action arising out of or rclcting to Buyey's ovmership, opcrcion or
maintenancc ofthe Assets. This obliguion shall sun'ivc thc tcnnination ofthis Agrcenrent and
completion of thc transrtbns contemplaad b1 this Agwmcnt.
7.6 Ridrts.of-wav. Prior to thc Transfcr Date. Bu1,er shall indepcndcntly obain *
Buy'er's o\['n exp,ense. all casernents or other real property' rights" liccmses or permissions.
("riglrts-of-wa1"; neccssaq for Bulcr to hwfull1 opcfratc and maintain thc Assets as they
presently cxist and upon rcquest. Bulcr shall pmvidc rcarcnably' satisfactory er idence of having
done soto Rock,"" Mountain Poter.
7.' Operation Llainrcnance. Rcpair. or Replacement of the Asser. Buler has or * ill
arange for qualificd personrrcl to operete rnaintain. and rcpair the Assets. ad rrill in no uay rell on
Rockl' Mountain Po*-er fu such scwicss. Bulcr has or is prepared to locate and pocurc on its onn
behalf, rcplacement components. including transformes, in the event of feilure of any- or all of thc
Assets at an), time. Buycr takes full responsibiliq for thc insall*ion of srch replacernent
components.
E. Conditions Preccdenn Bill of Sale.
All ofthe obliptions of Ror:ky Mountain Po*er undcr this Agreemem are subject rc trc
fulfillment, prior to and upon the lramfer Dato. ofoach ofthe follou'ing aonditions:
C\nomcr
,lrrct hrdui. Ag$umnl Prre 5 of lJ
E.l Representations. Warranties ud Covenants of Buler. All reprcscntations and
uarranties made in this Agreement try Buyer shall be true and conect in all matcrial rcspects as of
the Transftr Date as frrlly asthough such representstions and uananties had bcen madc on and as
of the Transfer Date, and as ofthe Transfer Date. Buyer shall have complied in all material respccts
nith all covenants made by it in this Agreement.
t.3 Litigatio[. At thc Transfcr Date. therc shall not be in cftct any order. decrcg or
injunction of acourt of competentjurisdiction rcstrrining cnjoining" or pmhibiting thc
consummation ofthe Eansactions conternplated by this Agreement (cach Party trercby agreeing to
use its reasonahle efforts. including reasonable appeals to higfier coufis, to have any such order.
dccn* or injunction sa aside or lifted). and no action shall have been taken. and no stsute. ruh, or
regrllation shall hare becn enacted. bl rny stttc or federal government or golenrmcntal agcnc)' in
the United StatGs w'hich nould prclent the consummation of such transactions.
Additionally, Rockl Mountain Poue/s obligation to transfer title to the Assets to Brger by
providing Bu1'er rvith the bill of salc contemplatcd herein shall be contingent upon thc following:
E,3 Palmcnt of Purchase Pricc. Buy'er shall hare paid to Rocky Mountain Powcr the
Purchase Price.
t.4 Rigfrts-of.ua], Buyer shall have provided to Rocky Mountain Power the
evidence of neccssaq righus-of-*ay provided firr in Section 7.6 abore.
t.5 D:Xonl4g_ej$. Bulcr shdthar'e paid to Rocky lVlountain Porrer all ofthe
Disconnect Cu.sls in accord with this Agreenrent and the terms of a separate 8gEement betncqr dre
Parties.
No latcr than thirt-r (30) days after the date upon which all ofthe coruiitions in
Sections E.-l through E.5 hare been satisficd. Rockf Mountain Pouer shall convcy'to Buler the
bitl of sde forthe Assets.
9. Survivalof Reprcsentations qld \larmnties.
All rcpresentetions ud u'arranties ofthe Parties, and all liability" therefor- shall survivc for a
period of one )ear past the fransfer Date. at rvhich time the obligations mder this agreement shall
cease and e.rpirc. Nonrithstanding tlre forgoing obligations under Section 7.5 shall continue
indefrnite\'.
10. IerminatioE.
l0.l IemniS4gigp. This Agreenrnt m.y be terminated and abandoned m any tirne
prbr to the 'lransftr Date ift
(a) The Parties agree in rrriting to terminate this Agrcanent b1' mutual conseilt; or
(b) Bul'er delivers a wrinen ndhe to Rockl' Mountain Pouer to the effcct $at
Rockl Mountain Pouer has defaulted in a material rcspect under one (x morc of its covenants and
egrcements containcd trcrcin (*hich shall he specificd in daail in such noticc), and such condition
or conditiors lnr.e xx bccn satisficd or such default or delhults have not becn rcmedicd (or*aived
Cultrrott
As*t Pudrlrr A8nffilrt P{l5of l5
by Buyer) u.ithin thirty (30) days aftcr the date such notice is delivered by Buycr to Rocly
Mountain Powcn or
(c) Rockl' Mounlain Potrer delivers a written notbe to Buler to tlre effect that
Buyer has defaulrcd in a matcrial respcc't under one or mone of its covenants and agrcements
contained hercin (uhich shall bc specified in detail in such notice). and such cotrdition or
conditions lnre not bsren satisfied or such default ur defaults hare not been remedied (or *aived by'
Rocky Mounuin Po*er) sithin thirty (30t days after the date such notice is dolivcred by Rocky
Mountain Porver to Buler:, or
(d) Thc Transfer Datc shall not have occured on or befort August I l- lOlt. or such
larcr datc to whhh the rcrnt of dtis Agreem€nt ma! bc extendod pursulnt to munnl agrecrncnt of thc
Partbs. pmti&d thu one ofthc Partie.s givcs notice to thc othcr so termimtingthis Agrecmem and
that thc Party' sccl$ng swh terminrtion has not defaultcd in a manrrcr rcsponsible for dchling tlr
Transfer Date post October l.l0lt.
10.2 -Elbt_gLTSEEinatiAB. Except whcre specitic terrns and sonditions ofthis Agteement
provide that such terms and rnrditions survive termination of this Agrcem€ntdry tcrminmion
pusuant to this Scction l0shall rcliete botr Parties hcrcto oftheir obliptiorc set fonh hsrGin, 8nd
an1 such termination constitutcs a hilure ofthc corditions to the obligations oftfte Prties to
implcrnent thisAgreement, exoeptthat rcthing hcrein sill relieve any Paq tiun liabilit) forany
breach of this Agree.ment. Prwidd frrrtlrer. exccpt in the case oftennination by' Buler on asoount
of default b1'Rrrck-v llountain Pottcr, Brryer shall pal all Disconnect Costs incuned bf Rockf
Mountain Poucr. or irrcr'rrab[v committed to, on or heforc the date of any nrch termination.
I l - Assignmcnt.
Neither Parq may assigr its rights under this Agreement to an! thard part) without the
rritten consont ofdre orher Partr.
12. Jurisdictioa of Regulator.v Authorities.
In thc crenl thot the Commission or any other staE, foderal. or munhipal ruthority
detetmirrcs that any pmrision ofthis Agreement conflicts rith or is in violation ofryplicablc lan,
or issues anl rules. regulations or orders r*tich require Rocky Mountain Pouer to aftcr or amend
any of thc prcr isions of this Agrcement or to terminatc this Agreenrent, or that othenvisc prcclude
or materially' intcrfere uith orrcscind tlre trursftr of asscts contemplated herci4 this Agrcement
automaticalb. shrtl be amcndcd to compl) with such dctermimtion. amendment nrle regulaion or
ordcn or. if so ordcrc4 this Agreemcm shall termima withorm cffccting tronsfcr of thc Assets to
Buler, orthc Assets and the prrchase price shall be retumcd iftransfrr has aircady occurred; ond in
an-r'ofthc foregoing *ents. Rocl$'Mountain Powcr slrall not bc liable to tsu.;rer for damrges or
losscs ofanl'Liod uhacrrver. including conscquenlial damagss. uhich Buycrmay sustain as a
rcsult of srrch &erminatioru amcndment, rula regulatior. or ordcr. or modifrcuion orErminuion
of this transaction and Buyer stull pay all Disconnect Costs incurrod by Roc$ lltounain Poncr, or
irrcr.ocably committcd to' on or beforc thc date of any such rcgulaory actim.
l3.Misgelltmous.
Cumrr
A3taPurdts,.tlllEffnl Prjr 7 of 15
13.l Amendment. This Agreement rnay be amended only by an instrument in writing
executed by tlrc Parties rvhich esprcssll' refers to this Agreement and states that it is an amendment
lEreto.
13.2 Section and Parasraph ljcadings. The Sc'ction and Subscction hcadings contained in
this Agreement are for ruference purposes onl.r' and shall not in any way affect thc meaning or
interpreation ofthis Agreement.
13.3 lYtiveq. i\n5' of the tcnns or conditions ofthis Agrcement may be waived at any
time and from time to time. in writing h3 the PerS' entitled to thc benefit of such terms or
conditions.
13,{ Notices. All notices" r€quests, dernands. and other communications givcn by Buler
or Rocky Mountrin Potrer shall be in sriting and shall bc deemed to hare been duly given rnhen
tehcopied, when delivered personally' in sriting or shen depcxited into the LJnited Stetes mail, to
the following addresses:
If to Rocky Mountein Power:Rocky Mountein Poner
Ann: Brent Dervsnup
Regional Business Manager
1569 West North Tcmple
Salt Lakc Cit),. UT 84116
With a cop)-- to:Rocky Mountain Porrer
Attn: Jim Hermann
Customer & Regulatorl Liaison
t35 NE Multnomah. Suite t00
Portland, OR 97232
If to Bu-ver:Idaho Falls Power
Attn: Jackie Flouers
PO Box 50320
l.i0 S Capital Avenue
ldaho Falls ID E3405
orto such other address as Buyar or Rocky Mountain Power may fuigratc in *riting.
13.5 -l3lqggedltreement. This Agreernent, uhen erecurd, constihrtcs thc entire
agrcement betr,rccn the Parties hcttto, and supcrscdes and ncgaEs all prior line urtcnsion
Eg;cements and undcrstandingrs" oral ard trritten. betneen the Partics hereto sith rcspect to the
Asscts,
13.6 Cotrntcrpgrts- This Agr*ment may be executcd in tuo counterperls. each of which
shall for all purposes bc decmed to be an original dtd bottr of uhbh shall constitute one and the
same instnrment.
Cu*rrr
A$aPrmblsAgcatE[Pqc t of 15
IN WITNESS WHEREOF. the Partics hare signcd dris Agrecrncnt as ofthe date
first above written,
BUYER:
By:
Name:
Title:lu,Rt op
B):
Name:
Title:
ATTEST:
By:
Name:
Title:
C'latcF
Asahlt{tG.,{1ltctttatr Prgc 0 of ll
(J d :1-r
EXIIIBIT A
DESCRIPTIONOF ASSETS
PIoDGIV Vrlueton
9rle ln Plrcr - Dlirlbu$on Fedltter
For: ldrho Frllr, ldrh - Plonccr Rd
Ant Dsrcdp0on
A-tVrlurton
m.bd.l U*
FBC
ACCOUiIT Vlntroc OU XnT
Saler
Picc
4(IsEcPorE
35'SEC POL"E
3YSECPOLE
35'SEC POLE
f2oHrx
s2oHrx
*2oHD(
vooHrx
$2 or{Tx
[zoHrx
3'CONDUIT
3" COt{DUtr
2,@NDUIT
3"CONDU|r
3"@NDur
3"
350UGrX
v0rrco(
12 UG PRTMARY CABLE
ryouctx
350UGrX
,/0 ucrx
2srryAOHXFim
25tOAOHXFi,n
ION'AOHXFIURN7./{,80
25 N'A UGXFMR
25N'AOHXFUN
25t(vAOHXFMR
364
364
354
364
35s
366
:t6s
36s
365
365
366
:16
:56
366
366
366
5l5'
36tw
x;l
!t67
368
:[8
368
:t6t
:s8
368
1968
t968
1994
zn5
tg6E
1968
1$8
1994
2(x,5
2ffi
1goa
1994
1Sr
1998
aps
2005
ls{
rs7
1996
1998
2m5
2005
1975
1W
1997
1S8
2@s
2005
1
1
1
1
110
95
55
20
95
70
300
30
g)
30
30
30
300
55
5d)
r15
ua
rto
1
1
3
1
1
1
730
741
1,216
1,438
75
65
38
?6
1Zt
90
r,96
191
160
206
2Sr8
't,135s
1,790
A8
1.1@
Eg
786
1,ru
9,584
1.U
1,18
1,&3
Tolsl 27,S
Cutrm.r
Asccr Ptfche Agccrrtcd Pr0c llt of l5
Dercrlotlon
Plant bService
364
365
366
367
368
Phnt ln Servlce
lncome Taxas
Srb Prlc. - Exbtlng Arlotl
Expens€s
Separation Costs
12 Mon0rs Reronue @ 167%
LegaUTra n sac'tbn Costs
Totrl Expcneo
Tottl Selo Prlca
Custorncr
Rocky tountaln Power
Prcpored Sale ln Phce, ldaho Felb,ldaho - Plonecr Rd.
Value of lnventrory
Poles. Torers and Fi:<fures
O,erhead Conducbrs & Dwicee
Underyrornd Conduil
Underground Conductors and Devices
Line Transftrmes
Satea Prlce
$4.125
$415
$2.948
$4,510
$15.592
$27,590
$10,736
$ii8.326
$10,805
$af,..2@,
$2,500
$39,567
\arct Purchse Agrtrlncnl Prfr ll of l-i
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-- l\ rO ro rO ra !O rO € rg rO to rOFtddddFH-d-d-E O C' C' C' O C' C' Cr Cr O E Ct.f .tl Ft .{ ^t 6r .a .{ 6a .{,ra d 6lqetsN>o-'c.=,lc'FDFB
-ldaaHartHG6HHa\FE>*iBlc'>^ b--i
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= il rl € Fl F 6. all Aa d d !a d 6 -g * rr* rri rr} va vr sr vr <tt{r a - st d
--- ra ro to Io rD ll! ro ur ...| ,t lr't urlI6d---dGdd--raEcrooooctocctcroo.f (\l r{ Gt N 611 (rl N .\l ara l\l 1! (\lqlF@-'o,>F>>>o. >o,'t Gl Fl G{ d arl Aa a\l Al H d r{ ?aENE'a-'>Di>\'i,Eo'-.b
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EXIIIBIT C
MAPOF FACILITIES
rt'
I
t
q
n4
!
n
a_
I
ia,
t
!
.t -j'
:*{tiat-
.l
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a-i
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ta
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.l"'.--.a.I
I
I
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t-
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rt l-i t-ll a - gI -L. a t: r.aB IF a
ftrrrrA.d,hr&Agel.ll h6r ltlof t5
E\IIIBIT T)
stLt, ol's,\[.n
SLLI.t:R:
BL'}'[R:
ROCKI' \l0tilT.\lN rcNER
ID.\HO FALLS
FOR \'.\I.UABLIj CO\SIDERATION totaling SIi Vli\I 1'-StVEN THOUS.\ND EIGI lI
llL\DRED Nil\ETY -.\,\D TWO DOt-[.,\RS (S?7,E92). thereceipt rrfwhich ishcnhy acknorvhdged.
Rncky lllountain Porer ("Scllcf') hcre0y gnnts.selhanddctirers to Idaho Falls ("Buler").
punruant kr an,{ssct Purchas.i .\grement &edarof
orcsently in theposse*sion of S\:ller.
THE .\SSETS ARE SOLD A\D DELI\'ERED TO BLYER ".\S IS. }\'H ERE IS.'
ROCKY MOI.'NTAIN FOWER HEREBY DISCLAIMS AND EXCLUDES
HEREFROM, (A) Ar{Y EXPRESS OR nmLIED REPRESEI{TATION OR WARRANTY AS
TO THE VAT,UE COI{DITION. DESIG}.I. OPERATION. OR QUALTTY OF THE
M.q,TERLALS OR WORKMANSHIP IN, OR AI{Y DEFELTS lN, THE ASSETS, (B} ANY
E)(PRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FTTNESS FOR USE
OR FOR A PARTICI.JLAR PURFOSE OR (C) ANY H(PRESS OR IMPLIED
REPRESENTATION, GUARAI.TTEE, OBLIGATTON, LI,ABILITY OR WARRA}ITY OF
SELLER" E)(PRESS OR IMPLIED, OF ANY KIND, ARISTNG BYLAW OR FROM
OF ORUSAGEOFTRADE
of nLY
ROCKY MOI,'NTAIN
B1t:
Narncr
Title Vice Comscl
ftrmrrAsfurhr*AguttEttt Prfp ttoflJ
COURSE OF
DATED