20181025Comments.pdf

EDWARD JEWELL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10446
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF THE APPLICATION FOR )
APPROVAL OF THE CUSTOMER TRANSFER
AGREEMENT BETWEEN ROCKY MOUNTAIN
POWER AND THE CITY OF IDAHO FALLS.
CASE NO. PAC-8.18.06
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of record,
Edward Jewell, Deputy Attorney General, submits the following comments.
BACKGROUND
On July 23,2018, Rocky Mountain Power, a division of PacifiCorp ("Company"), filed
an Application requesting authority to sell and transfer certain electric facilities to the City of
Idaho Falls, Idaho ("City";. These facilities supply electric service to locations at or near South
Holmes Avenue, Idaho Falls, Bonneville County. On September 11, 2018, the Commission
issued Order No. 34142, Notice of Application and Notice of Modified Procedure, with a
comment deadline of October 25,2018, and directed a telephonic public hearing be held on
October 16,2018.
On October 3,2018, the Company filed an amended Application requesting that its
Application be processed under Modified Procedure. In its amended Application, the Company
explains that its original Application had incorrectly included a caption that referenced an asset
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ISTAFF COMMENTS ocToBER 25,2018
transfer, and that it incorrectly referenced ldaho Code $61-328. In its amended Application, the
Company requests that its Application be processed as a customer transfer, and not as an asset
transfer as requested in its original Application. The Commission subsequently issued Order
No. 34169, vacating the October 16,2018 hearing.
Pursuant to provisions of the Electric Supplier Stabilization Act ("ESSA"), Idaho Code
$$61-332 through 6I-334C, the Company now applies for approval of an agreement which
transfers two customers from the Company to the City of Idaho Falls. Both the Company and
the City of Idaho Falls are electric suppliers under the ESSA. In response to Staff s production
requests, the Company provided e-mails from the two customers (Centurylink and Cable One)
indicating their support of the transfer.
In its amended Application, the Company explains that it had been discussing relocation
of its facilities with the City in order to accommodate a road widening project for South Holmes
Avenue. On May 23,2018, the City served Rocky Mountain Power with a Notice and Order to
Vacate ConstructionZone. The Company and City continued negotiations until June 13, 2078,
when the City filed a Verif,red Complaint in the Seventh District Court alleging Trespass. The
Company agreed to relocate its facilities the next day. Subsequently, the Company's facilities
have been de-energized and removed.
According to the Company, the load and revenue associated with service to the
communications facilities are minimal, and the Company and City have agreed to transfer
service at no cost to any party. Amended Application at 3.
STAFF ANALYSIS
Staff agrees that the revenue associated with service to the two communications facilities
is small, totaling 52,045.20 for the final 12 months of service. Response to Staffls Production
Request No. 4. Staff furthermore acknowledges that the costs associated with the facilities have
largely been depreciated, and that the remaining book value of these facilities is also small
($1,485.12). Response to Staffls Production Request No. 12. These costs, as well as the costs of
removing the facilities, will ultimately be borne by the general body of Rocky Mountain Power
ratepayers.
Staff is concerned by the mechanism employed by the City to induce the Company to
relocate its facilities without compensation, and that the City might resort to similar means in the
2STAFF COMMENTS ocToBER 25,2018
future. Although the dollar amounts in this particular case are small, the cumulative effects of
multiple mandates to relocate the Company's facilities without compensation could be
substantial. Staff recommends that the Company work with the City to develop an agreement
detailing who should bear the burden of such costs in future cases.
Despite its concerns, Staff believes that it is likely that the costs the Company would
incur opposing the City in this particular case would be far greater than any compensation it
might recover through litigation. Staff therefore recommends that the Commission authorize
transfer of electric service for the customers described in the Company's July 20, 2018 Customer
Transfer Agreement with the City of Idaho Falls.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Company's Application, approving
the Company's July 20,2018 Customer Transfer Agreement with the City of Idaho Falls.
Respectfully submitted this 25th day of October 2018.
Edward J
Deputy A General
Technical Staff: Mike Morrison
Brad Iverson-Long
Kevin Keyt
i:umisc/comments/pace 1 S.6ejkkblmm comments
)STAFF COMMENTS ocroBER 25,2018
CBRTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 25th DAY OF OCTOBER 2018,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. PAC-E-18-06, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
TED WESTON
DANIEL E SOLANDER
ROCKY MOLINTAIN POWER
1407 WEST NORTH TEMPLE STE 330
SALT LAKE CITY UT 84I 16
E-MAIL: [e-mail]
DATA REQUEST RESPONSE CENTER
E-MAIL ONLY:
datarequest@paci fi corp.com
JACKIE FLOWERS
IDAHO FALLS CITY POWER
I40 S CAPITAL AVE
BOX 50220
IDAHO FALLS ID 83405
CERTIFICATE OF SERVICE