20180503Application.pdf

Daniel E. Solander (ISB# 8931)
Rocky Mountain Power
1407 W. North Temple, Suite 320
Salt Lake City, Utah 841l6
Telephone: [phone]
Email: [e-mail]
Attorneyfor Roclqt Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES
IN THE MATTER OF THE )
APPLICATTON FOR APPROVAL OF )
THE ASSET PURCHASE )
AGREEMENT BETWEEN ROCKY )
MOUNTATN POWER AliD THE CITY )
oF IDAHO rALLS (NINA, CHARLA, )
ArlD MERLTN DRrVE) )
CASE NO. PAC.E.I8.O4
APPLICATION OF
ROCKY MOUNTAIN POWER
COMMISSION;d
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Rocky Mountain Power, a division of PacifiCorp (the "Company"), pursuant to
provisions of the Electric Stabilization Act, I.C.$ 6l-333 and I.C. $ 6l-328, hereby makes
application to the Idaho Public Utilities Commission ("Commission") for approval ofthe 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
Nina Drive, Charla Drive, and Merlin 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, oh Oregon Corporation,
whose address is 1407 West North Temple, Suite 320 Salt Lake City, Utah 84116, 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
APPLICATION OF
ROCKY MOUNTAIN POWER
Page 1
Commission. The Company's retail certificated service territory encompasses portions of
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. BACKGROUNI)
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 Decemb er 5, 2Ol7 , 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 ofwhich
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
I Case No. PAC-E-17-12, Order No. 33943
APPLICATION OF
ROCKY MOLINTAIN POWER
Page 2
lost revenues would be an amount equal to 167 percent of the total of the respective customer's
electric bills from the prior twelve-month period. In 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 SERYICE 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@oacifi corp.com
daniel.solander@nacifi corp.com
If to the City of Idaho Falls:
Idaho Falls City Power
Janice Flowers
140 South Capital Avenue
Box 50220
Idaho Falls, Idaho 83405
APPLICATION OF
ROCKY MOUNTATN 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:
By e-mail (preferred)
By regular mail
APPLICATION OF
ROCKY MOUNTAIN POWER
datarequest@nacifi corp.com
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
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
requests that the Commission: l) 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,2018.
Respectfully
By
Daniel E. Solander
Attorney for Rocky Mountain Power
Page 4
ATTACHMENTA
ASSET PIJRCHASE AGREEMENT
BETWEEN
ROCI(Y MOTINTAIN POWER
AND
CITY OF rDAHO FALLS,IDAHO
I r This Assct hnchasc furecmcnt (the "Agwrreot'), datod Urit -ilftby of
IIOA . 2018 is betneeo City of ldaho Falls, I&ho, a municipal orpcatim of thc Stets of
Ida[o d/b/a ldatro Fallg Powttr, ('Bulrcr); and PacifiCorp, an Orcgon corporation, d/b/a in ldaho
as Rocky Mountain Pouer(T,ocky Mountain Porvrr"). Rocky Mormhin Powerard Buyerare
somctimcs referred to collccilively 6 *hies'Ed individually as'Party.'
WHEREAS, Rocky Mouohin Powtr owos ocrtrin distributi@ arccts locacd !t Ninr
Drivg Chf,la llriw ard Mcrth Drirre, I&ho Fa[s, Bmnevillc Coroty, ldaho rnd mqc
particululy describod itr E dtibit C, drchcd to this Agrccmcnt md irrcorporatod hescin.
IVHEREAS, Bulacr hrs qSfGod to preasc ftc disEibutim ascct! frorn RocLy
MormtainPowcrandRoelylfiomtainPowcrhcr$yagrccstoscllthcdistsiblilion acar6to
Buyrr in accordmcc wiffr md suhjd b all ofttrc tGrms and ooditims of salc as cxpr€rsGd
hcrcin; and
NOW, THEREFORE, fu tnd h oonridcratioo of thc muuul gomiscs md
coveoant and cmditimr sca forth h &is furocrr€nt, 6c wfficiarcy of whi& is hcr6y mutrnlly
adrnowlodgcd md acccpto( thc Putics hcrcb ryrGc as bllowr:
l. Dcfinitions.
For pr;rcscs of thig AglEculrot, tho bllowing t€rms usGd hcrcin but oot othcnricc
dsfind hcrcin she[ havc thefo[owilrgmcrniqgwhco uEGd with initid capitalizrtioo uficthcr
singular or plural:
l.0l *Ass€ts' mcus the dirtrihtion a$cts owrpd by Rocky Mountain Powcr, as sct
forth in Exhibit A. A mrp showing lhc location ofthe Asscb i6 .firdrd as Exhibit C.
1.gZ 'Comrnissioo'mcos fu l&ho hrblic Utilitiea CmmisEion
1.03 'Rcvcm& Rcimbumt Costs' m&s th mornt equal o onc hffi sixty
ssvrco pcrccnt (167%) of tbs totol ofrwtouo fur$c mort comilt tvtilvt (12) uoffis usage fiom
eaclr of ftc crrsBmcrs trmsfcrrod with thc A,s ard prutmt b thia AgtE@cot, as chmm in
Eshibit B aDdpeviouly asfGdt4obclccnthc Pi,rdcs inthdocrtdn Asrct Allocatioo
Ag1mcnq datcd August 26,2005.
l.(H "I^egal ard Traroaction CosB'meer cosr in additioml to thc total oost offu
AsEGts snd hcrmd by Roclry Moutain Powcr in o,rdcr to crGbctuato this trm$Etion, ac ect forth
in E:ftibitA.
E foruLC.it,AilrhffiAEttGI
RrCG I of't6
1.05 "p1a!h8s Price' mcans ttc btrl pricc Buycr will pay m Rocky Mormtain Powcr
for (a) tho AssGE and O) tho Revcauc Reimbuncment CosB prsuant to Scc.tion 2 ofthis
Agrecmcat.
1.06 'Trarsfirred Customcrs" mcans trc Customcrs tha will bc hansfttr€d to ldab
Falls Power as a rc$rlt of this uaosaction and whose mcter numbcrs arc listcd iD Exhibit B.
l.Ul "Transf,crD&'mcans thc dae upou which Rocky Mormtain PourcrcreqrEsthe
bil of salc fur thcAlscts and dl ofthc Transftrrcd C\Etomcrs shdl bcc@rc th qrstourers of
ldaho Falls Powcr.
2. McadMreofAsscts.
2.01 ArscaJp BG Sold. Srtjoa o dl ofthc term rod conditius of ftis Agmot,
RoclyltfiuntrbPrcagrecsb sdl rnd Buycr aBrE6 to buyall ofRockyMorffiinFomrcr's
rigftt, ti0e ad intcrcc iu &e Assctt
z.Ul hErclrchice Thc hrchilcPricc slull bcNINETY TWO TIIOUSAI{D,
SEVEN HI.,NDRED TTIIRTEHII AT.ID OryIOO (392,713).
L03 Prrmfet. The Purdlas Prioc dull bG pud to Roc&y Mouutrin Powcrby Buyrr
withitr fiftccn (15) days ofthe datcthis AgrGGmGot is qccucd by bofi Prtioq ruch prlmcrt
shsilb€by chcc&.
2.M Inrtnrmootr of Cmrqme ud Troftr. Srfijd to 6c Sifigim of tbe
oditionrprooodcatrctforftin Soction 8 ofbirAgpcmat, andprnrotb all oftbtsma rnd
conditimc of 6io furmcon, Ro*y Momlain Povpr shdl cxmile aod ddiwr b Buyr a bill of
sdcto vcst itrBulprgoodmdmrediblc titlc tothc Assstc, sfijGstb m cmityimmss,licas
6 cocumbrurs, od nlbmidly h tho fom of the bill of salc attr# tcre rs Erhibit D.
2.05 Sales Traosftr- od OdrcrTsxce. Ifryplicablg my salos, Grcir, ffi,
puchrsc, u8q m similr nx whidr may be papble by rcason of thc srle of all or a portim of [tc
AEsGts shall bcbune lod pstd by Bu1rcr.
3. O. wnershipiScoffation and Ttmsftr. OPcrEtim ad MEitr€omcer RisL of Loss
3.01 Onmcrsbiq. Rocky Mountain Power stull own thc Asectrtntil lLeTrans&r Date.
3.V2 $cnratim ud Tlrasftr. Thc Putios mffiDlly agree qm ee followitrg
frocoArcs frr trmftring posscrcion od opemim of tte Arrctr: Aftcr &e TMrr lhts, 6GAss $dl m lmglr bc, m dmod o bq port of Roc&y Momain Pow's dccfiicrl rlnficm.
Rocky Momin Pwtr witl rd itl m&! as of tbc Tnrsfu DdG md is$E a final biling to trlc
Traofrrcd Clrsmcrs for my cocqry urcd, and ury othcr ctrgn thd hrvc asrrcd grior b ttc
Trurfcr&fiG.
I&PrlbCbrlrcMcApcaa
?..E 2of 16
3.03 tmo0lat*y upon the Trmsfer Datc Buycr chdl be rcsporrible for frc nliablc
provision of clectric scrrrie to, ard *t bi[ittgF aad ollections fion, g;c Transfts*d Gtstomcrs
ed for any and all maiotcnmcc obligrtions ofthc Asrcts.
3.04 Trander of Cttstomcrs. Rocky Mountain Pow shall rcliquish clectricsl servica
b all of itr resid€ots at I l:59 am, ldaho FaUs local time on thc Thosfir Datg or sudr othEr datc
as mutually agrcod to hy thc prrties in writing Rocky Mormtain Powcr cbdl bc oblig&d h
continue to ptol'itb scrvioc ud entitld b rucive pa)rmcot from th sdc end dclivrry of oloctic
serviceupto thcTrmsftrDab md Burer ahall havcthcatthorityaod 6coblig*iontopmvide
clcctric scrvice to the Transferrtd Ctsbmcrs and shall bc cntitlod b rcceivc poymcnt from any
clectric scrrrice fiom and aftcr 12:00 p.m. ldaho Falls local time on the day !fu tbc Transfcn
Date. rmlcss oftcrrisc qgrcd to by the Puties in writine From and fier thc Transftr DEIG,
scnrice b 6GTrrdnrrcd Customcrs sh!il bcprovidcdbyBupr.
3.05 OporationaeE!-Mrhtcomco: Rbkof Loss. Aftcrthe Tresfcr [hta Bulm rhall
owr md be mlely rctpoasblc fu &c operation md mainEmcc offtc Assctl md dsk of loss of
the AssctB. Prior b Sc Tlmcftr Dm, Rocky Mountain Powr ghall bo rcsponsible for thc
opcration ard mafurtamcc of fu Assets.
4. R4rcscontims ud trIurdiec of Rocky Morilain Powcr.
RockyMountain Foiwrcpeccats aod wrrranB as bllowt:
4.01 Otmnizatig[tJE-d Powcrs of Roc.kl,Moutrtdn Pow. Rodry Mormtain Power is
an Orogm coeorilim' duly rgmid and validly cxisting mdcr thc laws of trc Strtc of
Otcgon, erd is duly qudifiad to do busircs in thc StEtG of ldaho. Ro*y Mounrain Powcr hrs
all rcquidE powcr md nfiority to om thc Asscts"
4.02 Au&qritvRddirEb AtrGcmmu GovstrEGntrl AuttoEi4tion" RodcyMouutain
Pou'cr hr thc powcr rnd authuity to cf,ocutc aod delitq thic Agruuent ad to romumrtc &e
trmsactioos ontcmpUlc0 hcr,6y. Ttis Agr€€moot hrs bc€o duly rnd rnlidly altorizd ud
oongtittrcs the vdid md bidfutg ohHg$ion of Rocky Mouutain Powct qrfqccable in accordancc
with itstcrm$ qcil ar cnfurcemdmrybolinitod bymlicablo inrolrmcy,
roorganidion, rrcrmrium or similar lews afrecting tbc enfqocmsil of credibrs' rights
geocralyud cr6pt that fuevailabilityoftho oquitablcrcmcdia ofrpecificpcrfotounccand
injunctivc rclicf aro $fijGct b lho disq'dim of tho corrt bcfas sfrich any poccoding rney be
brouglt No dcctutioru filing o rcgistrdim witU or notice b, G arhorizrtion, oonstot r
appeoval o{, anygorrrnmcntal orrcguldorybody culhmity ir nmsary forthc qccrlion d
ddivrry ofthie Agrccmcnt by Rocky Morrntain Porrr o fu ooonmmfiim by Rocky Moutein
Powcr offfro ttncr'tioru omtcrndasA by fiis Agrcomcat, Fo'vidd that Ro*y Momtain
Powcr mrkcs m rcprcrconaion owmatry wie rtspcct b ryowlr whici mry bc EqEirGd
fioa trG ldeto hrblic Utilities Cmissim or ths Fdcrlal EoffE/ Rcgstatory eoffinission
4.03 Non-Contravention: Arytonrls. Thc crertio md ddivcry of this AgrmrGotd tbc cmnmndio of thc tnocdiotrs oomptatca hcrSy will not violtrtc, oonflict with or
rcsrlt in tbrrcach of myprwision of,coonsthnc a dcfuilt undcr, orrcslt in ths0cmiratimof
any notg bod, mm[nge lndeilnrc, ded of trust, aontrrct lcrse c odrcr irtrurncnt, ohligilion
fddof{lbCIS
.lllct Rrtic Agc.!t-rh&3of 16
ffi agrcm€nt of any kind to which Roclcy Mormain Poppr is now a Party or by which any of ib
assob maybe bound or aftc*od.
4,M Title to thc Ascets. Rodry Montain Powcr hrs good rnd mrrkaablc title to the
Assctr frccmd clcar of all licns, mortgageq ptedgps, ctaimq chrgoq scurityinmesb mothcr
cocumbraDccs.
4.05 Condition of ri,sssts. The Asscts will be sold to Buyer'AS [S, WHERE IS.'
Rocky Mounuin Poqrcrboebydisclaims and excludes ncrrtom, (a) anyexprcss orimpliod
r€prcscddim or wlnatty es b thc valuet onditio,o, d6igp qctmioo, or Adity of thc
matcrids uumr*mmshipuL orany ddocts in, the Assctq O) rnyerpr€sscimpliod warranty
of mcrchrntrbility or fitnces fur usc u for a partiotlar $rporc' or (c) any orpmoc or irnpliod
rtercscrilation, gurrttEc, obligUion, liability or warranty of Rocky Mountain Powrr, crptss or
impliGd, of any kind, uisiag by law or frun oilnc of pcrformmcc, otnrnc of dcaling or usagc
oftrade.
5. Rcnrrsootatipns,Eqd Warmtics ofBuvcr.
Buycrrtprcscnts and warnnt as followr:
5.01 &Eanization and Powcn of Buytr. Bulm is dulyqrnlifiod m do hrsinoss in thc
StaE of lddlo. Buyer hrs dl rcquisito porvcr and afhority b o*a tte Asscts.
5.A AUFOgitv Rclrtiw to Aseooot: Ciovam@l Authoriztiqp. Buycr has lhe
power ond auttority b Grocutc rrd delirrcr this Agrccmcot ad b con$mrmstc ths tamsactims
oodcmphtd hcrcby. This Agrccmcnt has bctn duly and validly arthorizod and conrtihrtcs the
vdid mdbindhgobligrtion of Buyercofuoerblc in amordmce with its tsilrq orocpt as
cofqmeot maybe limitcd by aplicrble bmlmrpy, irohm;y, rcorgmizatio4 Doraffiium
or similar lswB affecting the enforcemcnt of crcditcs' dgb $neraly md crccpt trat 6c
anailrbilityof &c oquitablcrtraodies ofspccific pcrbrmmcc and iqiuodivcrelief ue subjoct b
thc discrctim of the 6urt bcforc which my Focoodiqg ruay be bmught. No dcclratioq filing
or registrrtion witt ot notice to, u auttori:nnoq conscrtt or apJnoval of, aoy govcrmrffil or
rqulatory body c authmity ir neccssary for ths cxutrio,n and ddivcry of ftis Agrccmcnt by
Buycr or thc oonnnmatim by Buyer of the taneasfiqrs cmhphtcd by fris AgrGcnd,
troyidd Srt Buyrrmakeooo rrprwntrtion orwurantywithrcspccto rypovrlswhichmaybe
rcquircd tom &c l&bo Public Utilitiee Commisdoa m thc FGdGral Encrgy Rcgulatory
CommisciorL
5.03 No-Conaavdim: Amrovals. Tb exocution and dclivcry of6is Agt€Gm€ril
md lheonsurnmilbnofthstsuractims corncuptancthar*ywill notvbl*c, mflictwi&q
rcsult in a btrrdr of ony govision of, G oonltituta a dcfrult undcr, u rcsult ia tho uminatim of
any notc', bon{ mo(grgG, indcntuc, dod of trusg omtract, louc q ottcr instrumcot, obligdioo
tr aglccmcnt of ury kind o whidt Buyer is now a Party m by which any of its atscts may bc
boudmaffectod.
5.04 Cooditim ofAssots. Thc Ascts will bc gr*asO by Buyer *AS IS, WHERE
IS.' Bu5rcr r.tmrlodges thd Rocky lvnoudn p6utr' di+hirrr md G$dndB hcrcfi,omn (a) my
hbfrLqrl.chfuA3od
hrpaof 16
cxprrssorinplid rcDrGscatetionc warrentyEEb hc r,8lttq ooditioru dBiSeb opcrdio& or
qrnlity of thc rutcrids or workmmship ino or rny dEfccts in, frc Assctsr $) any cxpresc or
irrplied wrrmty of mcm*rrrtability or fitnoss frr use or for a particrrlar purposq u (c) any
cilprcss c irnplied rcer€Ecotatiut guarantoc oblisption, liabitity G rvurarrty of Roc.ky Mormtain
Powcr. s,rprcss or impliod, of any kind" erigingby law or fro,m courrc of perfomarcG, coumc of
dcaling 6 usage of uade.
5. Covcnads ofRo*Y Mountdn Pow€r.
Rocky Mormtaia Power oov€omtr ad agIE as follows:
6.01 Corrduct of Businclg. Rocky Motmain Power shdl own and opcrato the Assets
forthe trrc pcdods sot forth in Section 3 of this Agecmcrt in ncoorrdance with ito past practiu
ud shall cogage in no malcrial tsansactions relEting to thG Asscb out of flrc ordioary coursc of
busiocss, imludirUcntcring iDb my conhast orfinrmingmugEtrGot th.t linits Ro*y
Momtain Poum's ability to scll the Asscts to Buyer.
6.02 Insrmce. Until thcTraosfu Datq RockyMoutainPowerdrell oontinueto
self-instre trcfiry insltrucc crrntotly in cftctddcd b thc A&rcil$ adequdc b in$rc 6G
Assctr agdn$ lom ordmagobyfrre and othaddcq adprblicliabitityoonrirtcntwith md in
acoordarcc with its pacpracticcs.
5.Gi Rcasonablc E{forts. Subjcc't b thc tcrms of&is ,lgocmm ud fiduciary
obligrtios undfi applieablc lmr, Roe*y Mor&trin Powcr shdl usc cuamasialty rcrsoaablc
cfforrts to cfEctuatc thc tansoctions contsmpldd by this Agnocursot md b fulEll dl of thc
coaditions of the Parties' obligations undcr this AgrGEmEot rd shall do alt srch aots aod \irF
as rcasooably m8y be rcquhd to carry out Rocky Moruilain Po*cr's obligEtions hcrermdcr and
to cmplctc ilre traosaction ontcnrpl*od by thir Agrcement
6.04 NgEESdieg. Rocky Moustain Porcr will givc Bulu pnonnpt writtco notice of
any cvcag condition or fact arishg prm to the Tlmsftr Dete that would care ury of itr
rcprcecr*Aions and warrantict in Ods Agrccntcnt to bc untrrc in any matcrrial rGspcct.
6.05 Aocc$ to Asscts" Udil thc Trusftrlhc, Roc&yMormtsin Powcrehall dlow
Buycr urd its authmizcd lgEtts aod rcprcccatetivcs rcrconrbtc rcoas b trc Arscts.
7. CorrcnantsofBurrer.
BrycrcovaaaB and agrees as followx:
7.01 Insruca After the Trao*r lhr, hlycr shrU cffiy ineurocc o li$ility
oortr:age adoquE to insurc dtc Asscf,s egrinst lrc or danegoby fits llld olh rieLs, and public
Iiability cmsishs wilh md in rccordancc with its past pruioos for like rsscts.
7.W Rcasonrble Efforc. Subjcct to the tcrms of 6ir Agrccnrcot md fidrrciry
oblig*ims rmdcr rpplicablc law, Buycr *all uce oomrnercially rpesoublc cffids b cftctuate
fuffiistifris contonplued by &is Agrccrtrcot ad b fulfll all ofthc conditions of tbs Parties'
hfiBclyAckt$rAStffihlcS of 16
obliptions undcr this furccmtrrtt ad shell do dl such rch ad tdnSF as rcasombly rnay bc
rcquircd b carry out Buycr's obligdims hereundcrand o corylee thc trm$ction contemplrcd
bytbisAgroancnr
7.03 Notificatiop. Bupr will give Rocky Mrlmtain Powcr Fumpt f,rrittcn notico of
oay wco! conditim or fict arising prior b ttp Trrnsfer Datc that would cause my of its
rtprcscot tions ud wuxrotics in thig furecmcot b bc mtruc in any m*aid ruspoct.
7.U Ind€iltnity. Bulrtr shan dceoq imni&, aod hold hrnlcss Rodry Mountain
Dower, itr officaq dirccilors, oploycce, and egab, ftom and agriogt my ad all liabiliry, losE,
demsgc, claimq suit c causc of astion aising otr of or relding to Bu;rcr's omcnUip, opcrdim
or mdnteoucc of th Asscb. Thir obligrtim shrll $rvivc the tcrrrincion ofthis Agrccmcnt
aod complcilion ofthe tanssctidls couteupmca by ftis Agecmcnt.
7.OS Ri$fig'of-way. Priq to tfo Trms&r DmG, Bu),€r dull indcpcofuly ohdn at
Buycr's own ctpensc, all cawts or dber rcal pmperty dghq liccotcs or pcrmirsioo&
Ctights'of-nny") nGcc$ary for Buyer to hufidly opcratr and maimain thc Asscts a! trcy
prcs€trtly csist, d rryon rcqtrcst, Bupr srhrll ptord&rtrm$ly sdbftctory svidcooc of haviqg
dmc m to RockyMouilainPowcr.
7.6 Opcr*im. lvlaintcnmca Rcpair. q Replrccorot of thc Aescas. Buyrr hrs or will
aragp frr quElifid pcrsomcl to oporrtr' maimain, and qoirthe Ar$t!, ad wi[ in m way
rdyonRoclcyMorntainPo*trforsuc[scrviccc. Buycrharorispuodblocltcadpocur
m its owlr bchalt rtplaocornt ouponouts' induding trutsfuncn, in tc erleot of failurc of ay
or dl of&c AssctB d any timc. Buyertakco full rerpouibility for frc irutallation of nlchrcplimd comporcrfis.
8. Conditims Ptrcodeafi: Bill of Salc.
All of the obligltim of Rocky l,Ioulain Pmrcr undcr this Agrccacot sc subjoct b ths
fuIfillmca, pior b rnd rpon thc Tnmsfcr Dsc, of cadl of thc following conditims:
t.0l Rcprescoatioos. Wenntios apd Covatmb of Br$Er. All rrpeccmtions md
u/ardics mrde in this Agrmcntby Buycr shll bc tuc and cofiwt in all mrlccial rcspests rs
of thc TraNfGr lldc as frIly as thou$ mcb rcpmcntrtions rnd rYlrrlrtrtics hd bcco m& on
and as oftb Trlnfr Drtr, md rs oftc Trrnsfc Drtc, Bnlcr $rlt hnrc complid in all
mdcrid rcspccts with all co.runants ordc by it in this Agmcnt
8.02 titi$rt*E At Ots Ttusftr Datq flrcrG shdl ffi be in cftct my ordcr, dccmg o
iqiunction of e ort of compacil juisdiction ructrdtrh& cqiolning or p ohibiting trc
@ffi'mmdion of thc uaosactius comcmetro b!, trs Agrffi (crch Prty harcby sgrldng
to nsc ib rcasoo$lc cftrtt, including rcamable appcals b highcn oqntS to harr my cuch
o(dcr, dccrec or ir$unctio sst aidc a liftod), d no di6 tilrrtt hsyo bocn trkco, md no
srffic rulc orrquhaim rhall hrvcboeo enacrc4 bymystrlccftdcrrl gwErmcntor
gorarrtcnlal sg@y in &c Unitd St tcs rvtich wuld prGlrcr[ thc consrxrmrdim of such
trmdionr.
lfiohlbClOAEkttEAltEt|s8
?rgc6of 16
Additioodly, RoclryMominPowrr'sobliguiontotraosftr titlctothc Asscts to Buyer
by prrovidiag Buyrr with ftc bill of sale oont€mplated hcrein shall be ontingcnt upon thc
htlowiag:
8.03 Paymcnt of Prurchasc Price. Buycr shall have paid to Rocky Mormtain Power thc
Pur$ascPricc.
8.04 Rights'of-way, Buyer strall havc providcd to Rodry Moutain Powcr thc
evidcnce of neccssary rightsof-way providd frr in Sedion ?.05 of this Agrwncnt.
9. Sunrival elf Rcpr€smtations and Warrantieg.
Alt rcp,rcscntations and wrrmtico ofthoPrtics, md all liabilitytherefor, rhrll wvivc
for a pcriod of onc yearpart trc Tr.Bftr lhc, il wtidl time tho obligetions rmder this
qgrtco€ot shall ooaso and oxpirc, NohritMing thc forgoin& obligtions undcr $cction 7.04
of this AgrGcmcnt shall co,ntinue indcfinitdy.
t0. Tcrmination
10.01 Tqmination. Ttis Agrrcmcot mry be tcrminatcd md abrn&ncd at my timc
primto the TrusfGrDdoif
(a) The Partios agrcc in*ritinS b tcrmir@ his Agpcmcat by mutul cmsrq G
(b) Bufr ddivers a trritcn rctie b Rocky Mormtaio Powcr to thc efttt that
Rocky Mmtain Powcr hae dcfaultcd in a m*crirl rcspcst undcr orc or mor? of its cormans
and ngrqEmco6 coilaincdhcrcitr(xftich shdl bc opccificd in&tail itrsrchnoticc), and suc.h
cordition or orditions hrycnotbsr gaticfiGd csrch dcfautt ordcforlts bavo notbocn
remedicd (or waivod by Buyct) wi6in thirty (30) dap aftcr 6e dre such noticc ie ddirrcred by
Bultr to Rocrky Moutain Powcr; c
(c) Roe,ky Motntain Powcrddinere a rvritten notice to Buycr to the cffcct
that Buycr has dcfuttod in a matairl EspGct undr onc or urore of ib covenants aod agcernents
containod trrcil (which th.It bc ryGdfid h dlaril in nrchnoticc). rod euc,h coodidm r
conditios havrmt bGGo BdisfiGd orsufi dcfrult ordcfaults hweoot bmmrodiod (orrraivcd
by Rocky Mounuin Powcr) within thirty O0) dap rftcr fre dste such notice is dclivcrrd by
Rodry Moutain Powcr b Buycr; or
(O Thc Truder Ih has not occurrcd on orbcfrrc July 31, 2018 q suc.h lu
datc to whiel th tcrm of &is Agrucmot mayb extcodcd praumt b mutrral agrccmGot of firc
Partice, providd thet onc of ttc Putieg givcs mticc to trc otrcr ro tcnninating this ASI@I
and ftsfu Pailyeccking suchtcrnindbnhas Eot dGfaulbd in arnrmcr rcsponsibh fu
dclaying ftc Tfesftr Datc past July 3 l, 2018.
10.02 Eftct ofTcrminatim" Exocpt wlrcre spccific tcrrrs and mnditions offiris
Agrc.[ncnt providc thlt srd tcrrnc ud cooditioor urr ive tcrmindion of his Agrccmcrt, my
Eminatim pururant to this Soction l0 shdt rslicw bo0r Partics hcrdo of tbcir obligtims ra
rtrhLciryAgF|!tGt&A8tmt
hle ?of 16
forth hcin, md any such Etrritrilion constiiltss a frilrrc ofttc conditions m &c obligrtimr of
thoPutios to implcmatOds AgrcEmcot, qoeptthatmthinghcrcin willrdiercany Putytom
lfubility for mybrerchof this AgrcGocor
ll.Astilnmcot
Nci&cr Puty mey rssign its riihts ga{q rhie Agrcemcnt b any eird party si&ortr tho
ffiitta orscot of frc otrcr Paty.
I 2. Jruidiction of Rcqulsbry AutForiticg
In thc svcot that ftG Cmmisdoo or rny otlrcr state frderal, c muoicipd &frority
dacffiincs thet mypovisioa ofthis tlgtccurcnt conflicts with or ie in violtim of qflicablc
law, cissuEs anynilcq ryltdonsr orordcn whichrcquircRockyMouilaiD Po*'crb altrro
mead any of 6c p,rovirims of this.ligr€cmcol or to tc(min$e ttis Agr@cot, or lbat othersi*
Fcdrrdc or rnderirlly intcrftre vith m rcsdnd thc tr&8ftr of ascctr omtcrylded hcslnn, this
Agrcemcot ammdicdly shall be mtcndod to oouplywiilr guch dacminaion, mdmd, rule
ragulmim or ordcq a, if so ondcrod, $is futsrmt stull tcrminic withont erftctitrg tmsftr of
thc Asrcob Bnryrcr, mtbAssmd ecprchaccpriccshall bc raumod iftrefrhar alrerdy
oocurcE and in my ofttc fugptng cvqfi, Rodry Mounbin Powcr &all aot bc lirbte to Bulm
fu drnagcs or loscs of my kind uftaboc\rcr' incftding oonroqgcotial &mry'' rtfiich Bulc
meyu,rstainas arcsultof srrch dctrilnimtiq mcndmcnt, rulg reguldim, orordcr, u
modificdion ortcminilionofthistrao#io& md Buyrrshall payall DismoctCqtstrcuncd
by Rocky Momb Povc, or ircmcably co"mircd b, fi s bcfrrc tlrc dm of my srch
rcgularmyadim.
13. Misdlancous.
13.0t Am&cnt This Agrcerncnt msy bc am€ndcd only by ao fusrumcot in Miting
amrrd by thc Prtiee whiel crprmly roftrs b this Agrrcrncot md sbtss &Et it is ao
mcodmcathocto.
13.02 Soctim qd Pualr+h Hcadin+s. Thc Ssctim and Subccdim ludftrgr oufirincd
in thia Agrccnrcot aso ftr re&rtnoo FnposEE only md shdl not in rny wry aftct tho meoning c
ictcryffiim offig lgrccmco.
13.03 lVaiwr. Any offrc tcrnu u onditions ofthis fuimcot may bc weivd at uryt
timo md trom timo b timq in writing by tlro Puty ditld to thc bcncfit of sucjh Eus oE
onditimr.
13.04 Jut, Waivcr. To trc firllcst cxtctil pcrmittd by law, cach oftbc Partics wairrcs
ury right it may hvc to a trial by jury in rcpcct of litig$ion dinctly or idirccdy uisilg out ot,
uadcr or in oonncction wi6 &ir Aglocmd. E ch prty fitrthcr wairm my rigfu b oqrrclidatc
ayrction inx,hishajuytsielhrsbawdwd with uryottcracti@ in u,hidr ajurytrial@t
be orhes ootbcca waivcd.
HlllnhlLCryrfrcnl'c[EAt,r.ildhFtott6
l3.O{ Limitrtion ofRemadies. LTNDER NO CIRCUMSTAI{CES SHALL EffHER
PARTY BE LIABLE FOR AI.IY CONSEQI ENflAI, EXEMPI-ARY, PLTNITT\,E, SPECLAIn
INDIRECT OR INCIDENTAL DAMAGES OR ECICNOMIC I.oSSES ARISING OIM OF
AI.IY CI.AIM, DEMAND, OR ACTION BROUGHT Wtm RESPECT TO TIIIS
AGREEMENT.
13.05 Noticcs. All noticcq rcqucsq droaDdq and othcr communicarione givco by
Buytr or Rocky Mountain Powtr shf,Il be in rvriting aod shell bc deanod to hav.3 boen duly
givcn when tel@picq wha ddiverod personally in yriting or when dcpositcd inb &e Unitd
Statcs mail, to thc followittg ddress6:
Ifb Ro*yMountrinPowrr: RockyMqntainPowcr
B.ert Dewunp
70Nofih200 EEst
Amcricaa fdq Utah 84003
llrilh a copyto:RockyMountain Povcr
OfrccofCrarcral Councd
l{O7 N. Wcst Tcmplc Suite 320
Salt Lakc City, t rob t4116
If to Buyer:Idaho FallECityPowcr
Jactie Flowcrs
t40 Souft Cepital Avcoue
P0Box 50220
Idrtro Fdls,ID 83405
orto srrch othcr addrcss rs Buyer or Roe.ky Mouatain Powermay dccignatc in wri6ng;
13.06 Essatod Asceqm. This Agmsrt, vfra exeutcd,oostitutcs trcGotirc
agrt€mcnt betutccn Se Prtieo hcrcb wi$ rqpcct b thc Asscts &fitrd in this furwrg md
nrpuroacs aulnqpto a[ pirlineo(h.im ryrffits rnd undcntmding& cat od writt€ol
bctrvcco thcPmics lrctrio wilh rEryet btbcfuso6.
13.07 Cormtamtu. This furoemcnt may bc cx,csutGd in orffiplrtq cach ofwtiel
shall for all prrpoms bc dEsmd to bc u original ard which shdl ffidhrc ooc and the same
inrtrund.
tLhoFtI.CtyA'|.thrclr3Agemat?[r9cf16
IN WITNESS WHEREOF, tbe Parties havc signed tris AgFEGmcmt as ofthc datc
firstabovcwd$m"
IDAEO FALIS FOWER ROCI(Y MOT'NTAIN
By By
Narnq R*€cca L.Nama: R-
'fitle Ma1m, Idalto Falls Title: Vicc and Gcoeral Counsol
ATTEST:
CLERK
Couotyof Salt LaLe
)
) ss.
)
On this &W of bil*2018, pcnmallv anpcrcd bcfore mo R. JG,tr Rieturds,
whoceidcotifiigpcnooallykuiwato mc andwho mymc was dulysromorffirmcd statcd6dt
hc is frG Vice hccidot md Crwal Cormscl of Rodry Mountdn Power md fut srid doqm€ot
was signcd by hin in bchalf of Eaid Rocky Mountain Powcr by Ardrority of its ByIarB, and said
R. IcfrRichads rcknowlodgpd to re lhat said Rocky Mwntrin Powrr cormlted thc srrc.
IN WITNESS WHEREOF, I haw hercunb set myhand and afExod my ofrcial scel &B
day rrd 5rer firc rbow writh"
(Sctl)
bh Fl[reiry
@ CAROLA.I,rcCRAOGNEnaYnB.tSAjEOf UnllflCilrEp6rEUt@turfibnlt88CCl
h3c lOof 16
EXIIIBIT A
DESCRIPTTON OF ASSETS
PrcpcrtyYrluion
Salc ln Plaor - Dbtdbdlon F*lllth.
For: ldaho Fellr Forrer- Hr$ctt Ertrb
ArotYdtretlon
FERC
ACrBOltl{T VhE Salcr
OUAT{TITY Pdoc
Urderground seMce cabla
XFMR PEd 25 kve
XFMR Pad 50 h/a
XFMR H 75 ltyd
XHtiR Pad 75lwa
Seondaryjuncthn box
Sltgh ph.se prlrnary rlser
Sendcadrops
367
368
36r
368
36t
36t
368
30!,
tg73
1073
1973
lgn
1gt2
'r973
1073
rorc
1,gill
4,ff13
1,808
2,#2
2,O28
701
2,113
2,100
3,ZF
23
3
1
1
1
I
2
TdalEquipment $17,900
ldtuh[sGryArat$eAcrcora
PIXE ll of 16
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EJEIIBIT C
E)ffiIBTT D
BILL OF SALE
SELLER:ROCKY MOUNTAIN POWER
BI.IYER:IDAHO FALLS
FOR VALUABLE CONSIDERATION totaling NIMTY TWO THOUSAI.ID,
SEVEI.I HLJNDRED THIRTEEN AI.ID 00/100 ($92,713), &e rtocipt of which is hcr,*y
acknowledgo4 Rocky Mormtain Power ('Sellcr'), har*ygnnts, borgains, sc[s and
purcuant to an Asset hnshasc furcement d*cd
of its righl titlq end intqtet in and to all ofthe
egsas tiffion exmUit A attrclrcd to said Ass€t Puchalc Ag ncot, and prcscotly in
thopossosionof Sdlcr.
THE ASSETS ARE SOLD A}.ID DELTVERED TO BI.IITER "AS IS, WHERE IS."
ROCKY MOI.'NTAIN POWER HEREBY DISCI^AMS AND H(CLT'DET}
HEREFROM, (A) AtIy EXPRESS OR IMPLIED REPRESENTATION OR WARRANTYAS
TO THE VALUE, CONDITION, DESICN, OPERATION, OR QUALITY OF TI{E
MAIERIAIS OR WORKITIANSHIP IN, ORAI\IY DEFECTS IN, THE ASSETS, (B) AI.IY
E)(PRESS OR IMPLIED WARRAT.ITY OF MERCHANTABILITY OR FTTNESS FOR USE
oR FOR A PARTICULAR PURFOSq OR (C) ANY E)eRESS OR IMPUED
REPRESEhITATION, GUARANTEq OBLIGATION, LIABILMY OR WARRANTY OF
SELI^ER, HXPRESS OR IMPLIED, OF ANY KIND, ARJSING BY r-AW OR FROM COURSE
OF PERFORMANCB COURSE OF DEALING, OR USAGE OF TRADE.
dclivtrs qldaho Falls PowEr (-Buyer"),asof 0nfL8rgE . att
DArED *,**r*$J-rm
RodryMountain Powcr
By:t
Ti0cr:and Garcml CotursEl
R
ldrho FIILCtryAr.tPtdc.{ffi
nrEF 16 of 16