20190204Application.pdf

Y ROCKY MOUNTAIN
Bgll/,F^n",,
ft[CEIVET)1407 W. North Temple, Suite 330
Salt Lake City, Utah &416
: ,,: f il -h f,ll ll: klr
February 4,2019
VIA OVERNIGHT DELIVERY
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472W. Washington
Boise,lD 83702
Re:CASE NO. PAC-E-I9.02
IN TIIE MATTER OF TIIE APPLICATION FOR APPROVAL OF TIIE
SAI\IDY DOWNS ASSET PT]RCHASE AGREEMENT BETWEEN ROCKY
MOT]NTAIN POWER AI\ID TIIE CITY OF IDAHO FALLS
Dear Ms. Hanian:
Enclosed for filing in the above mentioned matter are seven (7) copies of Rocky Mountain
Power's and the city of Idaho Fall's Joint Application for approval of the transfer of elecfric
service of customers in Sandy Downs as described in this Application.
Very tuly yours,
G^
$,u,ion "^.^DJ
President,
Enclosures
l
Daniel E. Solander (ISB# 8931)
Rocky Mountain Power
1407 W. North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone: [phone]
Email : daniel. solander@pacifi corp.com
Attorneyfor Rocley Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMNflSSION
IN THE MATTER OF TIIE )
APPLTCATTON FOR APPROVAL OF )
TIIE SAI\IDY DOWNS ASSET )
PT]RCIHSE AGREEMENT BETWEEN )
ROCI(Y MOUNTAIN POWER AI\[D )
TIIE CITY OF IDAHO FALLS )
CASE NO. PAC.E-19.02
APPLICATION OF
ROCKY MOUNTAIN POWER
Rocky Mountain Power, a division of PacifiCorp (the "Company"), pursuant to
provisions of the Electric Stabilization Act, I.C. $ 6l-332, et. seq., 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 the City to purchase certain elecffic
facilities currently owned and utilized by the Company to supply electric service to two
locations at or near Sandy Downs, Idaho Falls, Bonneville County, as more particularly
described in the Agreement. In support of this Application, Rocky Mountain Power states as
follows:
1. Rocky Mountain Power, a division of PacifiCorp, m Oregon Corporation,
whose address is 1407 WestNorth Temple, Suite 320 SaltLake City, Utah 84ll6,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 MOI.JNTAIN POWER Page I
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. Roclry Mountain Power is a public utility
in the state pursuant to Idaho Code $ 6l-129.
2. The City of 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. The Service Allocation Agreement was approved by the Commission on
December 5,2017.
4. The Service Allocation Agreement specifies that existing customers as of the
date of the agreement would continue to be served by their current electric supplier irrespective
of service territory boundaries.
5. The Service 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
APPLICATION OF ROCKY MOT]NTAIN POWER Page2
respective customers' electric bills from the prior 12-month period. In addition, the acquiring
utility would purchase the poles, wires, cross arms, insulators, guys, and other facilities no
longer needed or required by the other utility to service that customer.
6. As part of the Asset Purchase Agreement provided as an attachment to this
Application, the City has agreed to purchase the facilities described in Exhibit A to the Asset
Purchase Agreement and the Company has agreed to transfer service of the customers
described in Confidential Exhibit B to the City, for which the City has agreed to pay 167
percent of the customers'previous 12 months electric bills, as shown in Confidential Exhibit
B 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, and transfer of electic service,
wherein Idatro Falls agrees to serve the load of the customers described in Confidential Exhibit
B to the Asset Purchase Agreement, and pay the Company for the assets transferred, a customer
revenue reimbursement, as well as the legal and transaction costs.
III. COMMT]NICATION
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
saltLake city, utah 84116
Telephone : [phone]
Fax: [phone]
Email : ted.weston@oacifi corp.com
daniel. solander@pacifi corp.com
APPLICATION OF ROCKY MOTJNTAIN POWER Page 3
If to the City of Idaho Falls:
Idaho Falls City Power
Bear Prairie
140 South Capital Avenue
Box 50220
Idaho Falls, Idaho 83405
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) [e-mail]
By regular mail Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
IV. MODIFIED PROCEDT]RE
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 RELTEF
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 located in Sandy Downs as described in Confidential Exhibit B to
the Agreement between Rocky Mountain Power and the city of Idaho Falls.
APPLICATION OF ROCKY MOT'NTAIN POWER Page 4
DATED this 4m day of February,2}l9.
Respectfully submitted,
By
Solander
Afforney for Rocky Mountain Power
APPLICATION OF ROCKY MOUNTAIN POWER Page 5
IDAHO FALLs FOWEN
OFA
Oflloe (2O8)612€4ilo
Fax(2o8) 5|2-8435
WER MEMORANDUM
To: Honorable Mayor and City Counoil
FROI* Bear Prairie, Gensral Vtawgq.W
DATE: Scptember 24,2018
RE Approve Assot Prrcbnsc Agreement with Rocky Mountain Powu for Sandy Dowus
Athchod is m Ass€t Prrchase Agreomemt between Rocky Mountain Powcr and the City of I&ho
Falls rclatcd to cusbmer orchange of elecfiical scrvice and asscts at Sandy Dorrns.
Itcse prcpertics arc in thc ldaho Falls City limis and have historically boen gcrvcd by Rocky
Mormtain Porvtr. Approvd of this agreclncot will utorizo a custmer and asset rursfcr to
allow ldaho Falls Powcr to ssrr€ Saody Doums. Rocky Mowrtoin Power is pnparing m
application to ttro h$lic Utility Comnission to seek aproval, in aocorrdancc with Sestions 4.2
md 12 of thc agremat.
Thc total tansfer and buyout coet is $59,469 dollars. [r acoordarce with Idalro Falls City Code
sectiou 8-5-2E, the Property ownetr Pdtrs & Recrcation will poy onc-hdf of the noo-assct frnsftr
costs, whicfo witl be $24,241.50. Idaho Fa[s Powsr fys tE otha one.half, and a[ odsting
inta$ilcttr€ asssts.
The City Anoracy has rcvieurcd the agreemcnl
Statrrespecftlly requests City Council approve the Assst Prrchase Agreement and autruizo th
Mayorto cxecute lhe documcnt.
Attachmcrnt
BPN76
C: City Clerk
City Attorney
File
tousuut\rJwrrusq
Sftf\EMEt lrtJLoLD
ftbPp\rcs BDP.O. Box 30:lil0 ! l4o s. caplt l | ltbho hll$ ldaho 83405-OZIO
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I
AINETrI'BCEA8E AGNEEMMM
BDTWIEN
ROCIil MOI'I{TAIN PIOTIIDR
AT{I'cuYorIDAm)rArrg rDAEo
Thig Aroct Prrfiarc Agncmoot (tlo rfuimcn$), ddod thir _ dry of20_ ir botwoct thc City of ldaho Fallr, Idaho, a municipd corpcrtion of tho StafiE
of Idaho d/Ua Eaho Falls Powcr, (IBuytr'); ud PrifiCorp, an Oqon corporatton doing hrsiross
in tdaho uRoo&y Momhh Forvc ('RoceyMomfu Povcf). Rocky Mootain Powc md Buys"
arc somotimcc nftrrod to ollootirrly ar Tartbr'od idividnlly ar ky.r
WHEREAS, Rodcy Moudain Poru owns ootain Arods locstd tn ldaho Falls; rrd
IVHEREAS, Buycr hu agud to putchaso ttc Arrd! fiom Roclry MonrtainPowcr
aod Rocky Modain Powu ha$y rgru to Ell ltcArectr to Buycr in accorrdmd with md
cubjet to dl ofthc torms EDd oolditims of calo ae hcclio, d iu aocordrmc with trc
Sorrrioc Allooatio Aglpmd cot!rcdfuobyRo*y MoudrhPoworaodBulrcr,datdOctobcrg,
2017, and ryprowd by the Idrho Public Utilitice Coomisriu o llooombcr 5, 2017; ard
}IOW, TIIERBFORE for and in conridordion oftho mutual promlece and covonang
and cmditior s€t fodt in this Agl€om€ot, thc eufflclmy of whic,h ic keby mutually ac*uowlodgd
md acceptd thc Putic hsrdo agrcc ae bllows:
1. Dofinitiqu.
For porpoccr oftbis Agrm@q thc fultorying taru ucrl hctcin hf m othcrwire dc6d
bcrdn ehallhawths fofiowfog EGariEg whm used with initiel@talbatim, ufi&dngularor
phral:
l.l 'Asstts" moaDc thoce assGts ownd by Rocky Mqrntain Powcr, as oct forlh in
Bxtdbit A, A map showtng thc loc*im ofthc AraCs is attachod ae Exhihit C.
1,2 'Commissionn mcans tho Idaho hrblic lftilitho CmmisEion.
1.3 iDiooonnoct Coctrn mcant Rooly ffiumtah PowGdE otruSc br diromcciagtbo
asscts flom the Rocp Mqutain Porrcr dietributim ftedcr, and my addithnal rclmd ryort
rcqucsod byBuytc.
1.4 'lPurphar Pri@" EGm8 thc pricc Buyc will pay to Roctry Momtaia Power in
exchugo fc tho AssGb, puxrunt to Soatim 2 lrereiu
1.5 I'TrmrfurDatcil meme lhc &tc upm wtich Rocky Mqrotain Powcr cmvoys to
Buyqthe bill ofsalc for6c Asscts.
2. Sale md Purctqso ofAss$,
2.1 Aercns to Be Sold. Subjectto all ofthc tcfltrs and oonditionr ofthis Ag[EctrlGil, Rodcy
Mountain Power sgrsEs b soll md Buycr agrccs to buy all ofRodry Moffiain Powcds riglt titlc
ad ifrcest intheAesda
C\frorr
Arch(dnoA8rrmoa PrEo I olla
22 hdl'telieg. ThePlrcharc Prioc fbrtcAsscrs drell $6pnqy4g1qg
TIIOLJ$AND FTOIJR HITIIDRD SIXTY aod NINE DOLI,I{RS (t59,,{69).
Ll P4mot ThchrchacoPrb shallbcpardtonockyMorutrin PoworbyBufrcr
withh fffto@ (15) dap of tho ilmethis Agpommt ir ercqrtod by boft Prtieq erch poyocnt shll
bcby chck
L4 Indrumcots of Comrcyapo andThnafcc Sr&jotto the.at'"frmion of$c
oonditions poocdcnt rct fofth in lhction 8 bdot ad prrmt to all ofthc tcrms aod aondtiong of
this Agrcood, Rocky Mumtah Power &all oxcortc rrd ddiwrto B'uyu r bill of cdolo rlst in
Buycr good and nrtaabb tida to &o AlsctE albloc to ro surity irtsc*$ licnr or
cocumbrmcsr, and mhtacially iD tho fuo ofthc uncrctnrbd Ult of ralc rttadod hscto r E*ibit
D.
2"5 Pnoratioo ofPtorronrt kopcrtv Tuo. Pcor@l pmpcrty taxcs, if rylicrbh, lhall bG
pnmtod barvm Rooky Mdntain Powcr md Buyo ar oftho Tlrnrfir DaE baod upon dnyr of
owncrship h thc E year in which ttG Ttu&r Ihtr oocun.
2.6 Salcs. Trusfor md olhcr Taxce Any ralcs, ciloiso, banlftr, eurchlq u*, ffi
almllu'tor whioh may bo pepblo by mn of fto ealc of dl or a podon oftro Areom shell bo
bcoc and poid byBuyor.
3. Owrgttio: @ andMafuilmmm Rirk oflors
3.1 Owm*ip. RD*y Molffrh Powr dnll orm thc Arocts uilil tb Tmsfrr llab.
3.2 Olrcratim adMrinffioe: Rirt oflocg. AftcrthcTlun*r&to, Buyr rhallowr
ard ba olcly rcryondtlc fotr tto qcntion ud ndntenanc ofths Aroetc and risk of loeg of tho
AnGls, kiortothchmsftrdata,RockyMouidnPwrrshsllbGrccpoUUtcforthcoperrthnard
ruahtcnanc of thc Arccts, For thc lift oftho A3sd8, Bu5rcr rhalt at ell tlm qcrtc md nriutrin
thr AssGtB in aomdanoc with pndcot utilitypraotica.
3.3 llisna*t Coctr. Buyct rball pry Rocky Mmataia Powu all Dhcomt Co*s,
including mrtcrhlr, hbtr, atrd applioblc ovqlrcads, ftrtho hltallEtioo, opcratiom, and maintcomcc,
of all ficiliticr that RocLy Mounnin Dorrcr dctcuniu sGrGrsoibly rccc$ary m eqarabthe
conniltion bfircco 3ho Asscts EDd Rocb MouDtah Pqrcdr ditlNm rysh" Btr!.Er full
comdnab opoflonr wtdt Rocky MormtriD Eowcr to thir cod. Buyu nry to$Ht ftar Rocty
Moulrain Powcrpcftnn ddid@sl volt ncoaorry to rmret thcAsr€B to Bqrodc owa
dlmibutiotrfrodcr,udrnyarch$rtpcrformoa Bhallbcuryooifcallyagruodbythchrtforiaa
rcpratowrittGo agrmcnt, udfuchqn fordwolt shdlbcdmodDirc Cocs for
putpoooc ofhis Agrcmcot only.
4. Reprtmffml rndlllanantfor of Rmkv ltfioufreinPower.
Roolry Morrnffi Bowor rcprcccnb and wauutr as followr:
4.1 Organizatim rnd Fowcn of Rocly Mqn0ain Potvctr Rmlcy Mourtain Powor is m
OrcgsD oorporation, duly oryianircd and velidly cxisting undcr thc lawr ofthe $tatc of Oregm, and
fucrArclMAgrut ?:$lof 14
18 duly quatitrd to do burinocr in thc Statc sf ldaho. Rooky Mouolain Powor has all rcquisito powor
and ailtcity to owuthoAucts.
4,2 Authoritv RdativotoAgIoerilad GovcmrEdil Authoriation. RookyMotuilaitr
Pmcr hasttopowr aod autbotity toqoub !d dclhr.rthtr Agpmt od tocouumnilo thc
traosactionr mtGupht€dhomby. ThirAgrtcmcut harbocodulyudvalidtyauthmiad rnd
martitt$os tbs vllid md Uuliag obliption of Xmky Moein Powor ooforccablc in amduoo
with ib tcrur, cxocpt ar cofotwt uy bc linitod by applicablc bolngcy, iuolvlucy,
rwguiratim, morrtaium or rimilar lawaffoding tho afucmmt of qtdiorC rig[neg@caly
md cxcopt tht lhc ardhbility of thc cquitrUo rtmodics of rpcdfic pcrtrnms, and iqhnotirc rtlid
arc ru$oC to thc discmtion ofthc court bofom rhich any proooodiqg may bobrurght. No
doclaration, fili'rg u rtgirhtion with, a ndico to, or ar&orlzadon, coomt m appuvrl oq uy
goverrrmrtsl mrquhory body or afiority ie mary fortho qxa$id md dclirtry ofthir
rlgttcm€ot by Rocky lrountdn Powcr c thc onsn natiolt by Rocky Morntdn Poscr of tho
trmssationr contfryldcd by this AgtlctrtGot, prsvidd thatRockyMctnbinhrycf mnlls m
rtprwcrrtatim orwmuty wilh rorpoct b aprouls whie;h may bcrcquind frm tlrc ldaho hblh
Utilitior Cmmirsim or tho Fodral Enqgy RoSulatory Go,'nmicsio.
43 Non€otrgwotim: AI'DSurals, Th erecutim ud dalirary ofthir Agpcrncnt rnd
thoonnrmdioD ofltotouctiml aontqhtd hcr*ywill aot vlolaa, cmrltctwith orrtrult
in a kcaoh of ary pmvirion o[, a aonstitrto e dofrult undor, q rperlt in tho lrrninrtion of my
notG, bod, nortgpge, indmturc, dood of tnr*, cotracl, lcarc or othor infiuncot, obligrdor or
aglffiot of ary Hnd to whic,h Rocky Molffiin Porvor is now a Ihrty o by wbich arny of itt
rsds rnry bc boud or affectcd"
4A Tiflab thcAssets, RookyMomtain Powerhas good and markctablo titlototheAssets
free aod clcar of all licne, mutgagcs, plodgcs, olaims, clrarges, seorlty interegts or otlrcr
encumbmnoes.
4.5
"rditioa
ofA$etg. The Arrcte will be oold to Buycr oAS IS, WHERB IS.n Rocky
Morntain Power bcreby disclainl and excludes thcrtfrom, (a) any orprcss or irylitd rqreecnhtion
or waruty as to thc value, coudition, dosigp, op€rdion, or quality of tho matcrials or urc*marshtp
in, c any defests in, thc A.eacts, O) any cxpiress or impliod wEnanty of mcrclrantability or fitncss for
usc G for a particnlar pupooe, or (c) any CIryrets c impned rcFocatation, guarantGe, obligptio&
Uability orwarmty ofRocky Moutain Power, exprcss orimplie4 of anykind" uisiqgby law or
fium corrsc ofperformanoe, corlrtc ofdcaling, or usagp oftado.
5.@ofBuys.
BuFr rEprcs€ilts and warrantc as follows:
5.1 Orgoizrfim and Powcm ofDurrcr. Buycr is &rly qualificd b ilo bush€s8 i! ftG
Strtcofldrho. Bnrpr hae a[ mquisiE powcr ud authmity to opn thc A$sts.
52 Authority Rohlfue toArlreemal: Govormco,tal AilhqrizBtigl Bufior hacths
powcr and urthority to €nocute and dolivcrthb Agrcmnt and to colxnmmate the brneac,tionr
contcorplatod hercby. This A$ococot bar bcn &rly and ralidly authodzod md oonrtiilrtcs thc
valid and binding obligation ofBuyer enfmeable in accordmce with itrunro, aocpt og
cnforpemoot Eay be limitd by applk*le banlnrptcy, inrohwy, rcorganizlEoor tmratrium o
simflar lawe alfecting thc cnforcmrt of crcditm' rigtrtr gEocratly and cxocpt thm the availSility
hcArchfuoArrct PrgD3 dfa
of lhc cqutt$lc rEmcdic of rpaifo pcrfonmuco and iqiuDctirc rcliof arc subjGct b tho dirqdioa
oftho oourtbcftr€ whfr:h myproccding my bcbsou$t. No &drrdioo, fifngcrcdstndm
'witn,orndbcto,orarrthuizdio,c6rcdorcppmnloqeygonurE@lorrqutabrybodya
ruftoity isnmry ffiltc crcrnil&rn andddiwryofddsAgrqncd tyBu5pr orthc
oonsummdor by Bqru oftbo tamctions omcmplaod ty hblgtmcot, troyidd that Buyrr
mrkcr no rcptrcdation orrarruty with rcrpocl to apFst/ds which my bo ruqdrcd trm tho
Idab Publtc Utilitics Cmmisdon mthoFodcal Encr$t R gulttotry Cmmirsim.
53 ldcCmffi,mtftrn: ApDrouds. Ibcrotnilio and &liruyof&icfurccmcotand
tho cmmnrtlon ofthotransaodoor ood@platd hrcby wi[ notviolao, mnflictwilh crqrlt tn
a brcae,h of myprovirhn o{, ooonnfuc a dcfrttft udcr, crusu[ intho loroioatitn ofry notc,
bood, mtpgc, indonro, dcdoftust, offiact,lo*corothcr inrlnmcnft, obtigdionorrgrmcot
ofmytind bwhichBrr,,Gr isnow aParty onby rhich myof iearo6rnybebouad oraftotod
5.4 Cmdidon ofArcar. thc Asr.ilu vill bo purchased by Bufr oAS XS, WHBRB IS.n
Bulrr acknowtodgcs lhat Roclry Mountrin Powr dirolaims rnd cxchrdoc thsrfron, (a) auy cxffl
or implid rcprc*ntadm 6w.rmty rstothcvrhrc, cotdltim, dcrigl oecrldm, orqualityofthc
matorials orwulmmship tn, 6ary &ftsts i!, ths Aoscq Q) aaycxprw cinpliad wmanty of
mcrcUntrtemy u fuo frnuac c for aprdouhr puposat or (c) any crftss or irylid
nprctcolanoi\ gsdetoc, obligation, liability Bwamdy ofRocky MurdainBow, GxtrEos or
inplid, of any kir{ dtrgby law o fi:om cotrs of pcrftrmmoe oourso of doalhg orueago of
tn&.
6. Qsrecds.oJ.@
Rocky Mcnrmin Fotrcr covamts rod agrcd ar follwr:
6.1 CooArcil ofBurinca. RodryMamtah Postr$all mmd oprde tboAHr hr
tho tim paiods sd forth in Scctim 3 hccin in aooodrncc rlh its part ga0tic6 and rhalt s.gago
in no mrtorial tmraaimr dating to thc Atsca out ofth odfoary crlurso of busircss, iDctrding
otcing hlo anyaoffiot or finmdng mangmoil that llnitsRoclryMomrrinPowods abik?to
rllthcAsrtr bBuyrr.
62 Inmruao. Undl tb Tlaurfo DatE, no*y Momhin Powcr ehall ootiauo to $E-
insrroccrrry insuraroc aucdly in offoctdrt6d bfuArscts, adoqntoto iniluEthcAssots
egainc losr or damagc by firt md dh6 ritb, od ptblic tirhility onsiffi with md in
rsodare with itr pcrt pactioc.
63 Rsaeon$lo Bffo,t*. $nbjoc b 6G tcrmr ofthfu Agrfficnt rnd fifudary
oblie[tiru urdcr rylicablc law, Ro*yMofiin Forvorrhdlumoonnmidlyrcarmablccffurh
to cftctuabthohaomtimr omtrmplebd bythbAgrlmt aDd!o fulfill all oftbcmditftng of
thB Particd obligetior uDdor &is ASrEorct ild lhall do dl suc,h s and thingr ac rcomrbly
may bo rcqrirod to crry art Rooky M@ntah Powcdr obligntionr hclt;rrndtr md to oonpldc ftG
elmction cmhmPlatod by thit Agrccrmcat.
6.4 lildifaetim. nmky Morullitr Porycr will giw Buf,crpronpt wrttton rntioo of any
svcat, oodition or frd ufdng pdrortD 6c Tlurfu D@ hot wqld oaur my of ib
rcpicscotados aod vrrmtia in this Ag@t to bc uffiuo in ary mrArlrl rc4d.
C\rhrcA*aPudsAgral Xrlrlofl{
6J AocostoAtscb. Until thc Tlmrfcr DatE, Roclry Mountain Power Ehall eltory
Buya ad ib ilrtdad agcnts ud qrtacnhtivts rcasmrblc rpcceo to 60 As!ct!.
7. Corrcnants ofBuvcr.
Buyc covcnmtrr and agroee as followe:
7.1 Coduct of Busincso. him to tho Trrosfcr Dato, Buycr elull opuatc thc Amcts fc
thc tiDG poriods sct forth in Scctforn 3hcrcin in aoordame with Rmky Mqrntain Powodc
ingtsrrctioos, if any, and Rocky Mountoin Powede pod prasticcs. hio to tbe Transfu Dato, Bu,rcr
rhaU cagpg! io no rurerhl tua.tims relaling to thc rale ordiryorition of thc Arseb in wbole or
in po(.
7.2 Imurmee. Aftor thc Tmnsfa Dab, Buycr rhall sfiry insurre edcquato to inmre tho
Asgcts agBinst loss ordamage by fire aod dhcr rists, 6nd public lhbility consisht with md in
acoodamc with itspa* praoticos for llhe scse*s.
?.3 Rpaeoosble Efforts. S$jmt to thc tcrms of &ia Agrccnncnt and fiduciary obligationr
undcr ap,plieable law, Buyer shall use cmmeroially rcronabb cfiorts to offGctuate the tnnsadions
oonttopled by this Agrcmcnt md to fulfitl dl ofths oondrlionr ofthc Barticg obligatimr uodcr
this Agpcrrcril and shall do all nrch acts andth"g. arrcrsooably may borcquind to carry out
Buycdr obligptiom hcreunder ad to mmplote the tmractioo gontcmplatod by this A8rocdrcnt.
7.4 Notification Bula will gi\rc Roerry Mouotaln Power prrqt writt€tr notioo of
any cvent, oondition or fact ariaing prior to thc Trufq IhtG thst would cauec any of its
Epres€ntations md warranice inthir Agrcemat to bc unroe in any marcrlal r€spGct.
7.5 Aaocsr to Ass*. Until th Trausfq lhts, Buyor ehall allow Rocky Mouutrin
Powor and its autbrizcd agonts aod rcprtcenativts rrasonablc acccss to thc Asstts.
7.6 lodemaitv. Buycr shall dcfto4 itdmnify, and hold harmlcss RochyMountain
Powcr, its officcr8, diraotors, mployocg aod eg€rt& from and agpinrt any and dl liability, loss,
drmagc, claimc suit or cause of actioo arising out of or rolating to Buyeds ownccship, opcration or
maintonanac of the Assols. ThiE obligation shall sunlvo thc tcrminatim ofthis Agrt€meotmd
oornpletion of the traosac'tions contcmphtod by tbis Agrearcnt.
7.7 Rights+fi*ur. Priorto lhcThansfGr Date, Buys $all indepcndmtly obain at
Buycr'e own cxpcnsc, all oarememte m othor rcal Fop€rty rightr, liceorcr or pcrmirsious,
('rig!ts<f-wayr) Irooc8saD, for Buycr to lrwfully opcato and maintaiu the Acs€ls ao thcy
pcrscotly oxist, atrd rpon rcquesl Buycr ehall nrovidc rcalm*ty sati$rctory widcnc. ofhaving
dono eoto Rocky Mounlain Pmvcr.
7.8 Opcoation. Meintenrnoe. RErair. mB@. Bupn has onwill
anang! for qrulifiod pcffionncl to opcato, Eaintain, md rqsir ttr Assrts, and will in m way rcly on
Rocky Mountain Power fc arch gclvices. Buyer has or ic pqarod to looatc and pocura oa itc owtr
benalf, rcplacomcat componcots, iuctttding tansformqr, in lho ovcnt of friluro of aoyorall ofthe
AssctB at any tima Buyer takes ftll rcrponsibility forthc instE[atiotr of snch rrplacemcut
compomts.
8. eotrOdou-s-Preocdcnt Bill of Salc.
CuomA*thofrAfnmnt P.gp 5 ofl4
All oftho obligndoos of Roo$ Mormtrin Fowe uodcr dds A{f@d rrc s$jcct !o &c
fulfillurent, pnor to eud upon the Tmnefor tHc' of mh oftlc folhrilg conditima:
E.t ReprtsmtiliqB. Warrailiol md Covtrrmts ofBu),Er. All rupentrrtions rnd
warruticr D.dc in thir Agrcemcnt by Buyrr rhall bo truc ud oonpc{ in atl natcrlal rcrpeto ar of
thoTrmsftr Dalo as fully sthotUb mdrtprteentdoe ardwarranticg hd bm madc m md as
ofthe Ttansftr Datc, and r ofthc Transfer Drtq nu),or ihrll hyG ooryliod in dl mrtcrial rtrycctr
with all corrqrants msdc by it in this Agtqtrmt
82 Litigation. At thc Tiansfbr Dator &crc rhrll not bc in ofrc{ auy odcr, &crco, u
iqiuo€tioo of a cann of omfieatjuridictioa Ecrainlng; Gnjo"ir'& orprohibitittg thc
omf,rmmation of6a uarnctions omorylard bythir Agrccmcrt (orch Prty My agrcdnglo
use ib rcaoqnblc oftrts, inahding rcaroaabb amcab toLighc( courtr, to haw any nrchordct,
dcrce or i4iunction eot arido or ltf,cd), md m aotion sto[ hora bm tah, aud rc CdUo, rulo, or
rcgulstion ahall havc bctlr coects4 by uv etate or ftalcral gg\/cmslmt or ggtqErdal agoooy in
tho Unitd States which would fgvEtrt fts ooosuoosim of $ch Emsactims.
AdditiooallS Rocky Mountain Powcds obligation lo hmsfrr title to the rdsscts to Buycr by
providing Buycr with thc bitl of rale contcophtcd h€rcin sttall bc cmtingc,nt upon thc fuIlowing:
8.3 Pelmcot of Purclup Prfr:c. Bu),ur shsll hayc paid to Rocky Moutrin Powcr tho
Purphaec Prie.
8.4 Righb.of-way. Bulcr ihall hrrrc provirlod to Rmry Modrin Pows tho
cvidcnce ofncceoerry rightsof-way prcvidod for iu Soction 7.7 abovc.
8.5 Disconncct Coats. ButrGr rhall havc paid to Itoclsy Morntrin Porer all of thc
Discormoct Cocn in acoosd vith this egfo€m€nt md thc rcrms of a scpado agr€qnmt bctwen thc
PutioB.
No latcr thrn 6irty (30) dayr aftcr tho daE rrym shidr all of &o oonditior in
Soctime tJ tbsflgh 8J hav,c bcco ratbfic{ Rocky Mquldr Powcr chrll ccnrcy to Brr)rcr tc
bill ofsdcfrrtbohrers.
9. Survival ofRsor€&iltations and W.!r!otica.
All rcprceotatiors and wrramioe ofthe Particg and dl llabilt$ lhcrcfor, sball $rvh/e for a
pcrid of onc yw paot the Trusfcr Dalc, at whioh titoo thc obligadono unda this agecmcnt shall
oeas€ ad cxpin Notwlthetaoding the fcgoing obliglti@s undor Sodion 7.6 Bhll oontiurc
iudcfinitcly.
lo. Iminn[os.
l0.l Tcrmlnatlon. fbis Agtand may b€ tmninatod and abandmed at mytino
prior to thc Transftr Dato it
(e) TheParties agrco ln writing to tcrminate thil Agecmeirt by munnl cmscnt ot
turAraHrtoAfmt Prtp 6 ofla
O) Bufrdslivtrr awritla ndiccto Ro*yMombln Po*rrtotb ofrotthrt
Roclry Monr,ain Fowct h dcfuiltrd in a mdairl rapoct rmfu oc o morc of ib comm and
a8rGcrtrcots oodainod hcrdn (which shall bo opocifiod h&aiil in mch nmioo), rnd urch mdltton
a omditiong harrc d ba satfufid q auch dc&ult or dsfaults hsvo not booo rmodiod (orwaivpd
by Bufr) withiu thtuty (30) daye aftathe drb suci Doticc is dctirorcd by Buytr to Rool$'
}lountain Powor; or
(o) Rmky Mqrntrin Powcr dclirqr a*ritteo nodc to Bqmto tho ofrctth.t
Bu),Er has dcfaulOd in ammsrial rcrycct undcr oncormue of itr 6lmmb md agrrcarcutr
contaitrd lrcmirr(which Bhrllbc ryGdfid indotait insuchuotiao), md suah codithn or
oonditlons haw ffi bccn ratirffod orarh dcfrutt q dc,ftttlu bnlc not bocn rcoodlod (r*rirrod by
Roclry Murtrtain Porvcr) wilhiD thirty (g)) &yr aftc&cdab aIchrdioc ir dcli./ErEd bynmky
MoutrtdnPosctoBu5rcr; a
(O Tte Traoofo Data shall not havc occorcd on u bc,forc Dcemben l, Z)18, or
Buch laffi dato !o wbich the tarn ofthig Agfomilt EEy be olffiidod pnrutrt to muhul rguemcot
of thc Partias, guvidd tha m oftho Partica givcr noticc to tho dhcr m trrminating thts ASIccmGot
od thd ttekfiy so*ittg$lshrcrmhdion hacmt dcfaultod ia snran'crmpsasiilg fr ddtying
tho Trrasfer Dato prst lolury 2" 1c.l9.
lO.2 Efrct ofTcruinatim. eocpt whorc ryaificEu ild oditims ofthbAgrGamt
prcvidc thrt nroh tam rnd mudtlome nnrirc tsunination offrfu Agemsotgy hniratim
purennt to dfs Soclion 10th.ll ttllcve both Hor hanto oftboir oUigEtim &t ftrth hcrcio, od
auy such umimtim oon*fum a frihuo ofthe conditimr to tho ohligation! of tho Prrtico to
hplcorntthisAgnocmcd, €f,oqtthdtrothirg hcrcin ylll ftilim anyPrty &mlhbllity fcany
brcach ofhis A$ccmcrl. Provldod firrdrcr, cxcspt in 6e csc oftrrnination by Buf,c on soaM
of doftuft by no*y Morntain Pwr, Buyu shall pay dl Disoonmct Cocta inormd by Rocky
Itlountah Powor, c inumably cmifrod to, m or bofuc thc datc of any urch tcrmin*fon.
11. Asstmt.
Neithcr Party mry arsigp itu rights unds this Agrpon€ot to anythird parly withort thc
unitton aonsGnt offte o&Fr Paffy.
I 2. Juripdir*n -sf-8esu&ry-Au&pdtb'
In the wut tbat the Cmisrlm cany othcr Satc, fodcral, or trunldpol au&ority
dcHminea that myprovision of this ngroenent con0ictc wi6 or ir in violrtim of ryplilnHo law,
or is$rcs uy rulcs, rcguhtiorr, m ordcrt whioh rcquirc Rooey Mototain Po*ret to altc or amcnd
rnyofthcpovisione ofthk Atfomaot orto hrminaE tbir Agrccmcnf, orthat otlrcrwfucprocludo
o mrterially iilerferc with ormoind tbotaDlftr of asscts contemptatoa hffcin, ttb Agf!@od
altmatically dull bo moadod to comply with alc,h rhcrminatim, amodmcnt rulq rcgulatim o
omda; or, if uo ordsld, 6is AgFccn€nt shail t€rofutc withqil cffoaing raos&r of tho A$sts to
Buycr, orthG Asscta amd thc prrchasc pdcc shdl bo rftuncd iftrarfu has ahady occrrroq and in
my ofthe fwsoiog cvouts, Ro*y Momain Power shaU not bc liahlc to Buyu for damages r
loeco ofoyHnd whauosriu, including conrc$rcotirl dmagcE, which Buycrmay rufiain as a
rsult of sllch dctorminstio& mcndomt, nllcr latul8tioD, trordc, orrnodificafion ortcrsrlnatirm
ofthis trosaotioD, md Bulu stnfl psy all Dirconocc Cocts futcumd by Rocky Mountrin Fowcr, u
inuwbly cmittod b, otr or bcfdG thc datc of aoy auc& ryilatory a.tioo.
@r{ERnftrcAguutt h$?of la
13. Mirca[amus.
13.1 Amcodomt This Agr@cut msy bo @codcd mly by an iastrumcnt in writing
cxcqsod by 0ro hrticc whic,h cxprcrsly EfGrs to thfu eglrsmcrt and atatas tfi* it b m mcadmem
hcrt*o.
132 Sactio and Parrgraoh Headiilrs. Ths Secdon and Sutsootkm hcadiqgr mtainod in
ttir Agrcaacd arc fur rcfcrenoc purpos otrh and shs[ not in any way aftc.t thc mcaning or
itrllorprchtion of this Agrc@cd"
13.3 Waivcr. Ary oftho tormr m mrditiong ofthfu agrcomcnl may bo waivod at any
Hnc and ftom tirrp to timc, in writing by thc Party €ditld to thc bcocfit of such tcrm or
colditims.
13.4 Noticcs. All noticcq reqrcttl, dbmandq aod ofrcr ommrmicationc givcn by Buyrr
or Rcty Mountain Powr shall be in writng and rball bo dEGmGd fo hsrc bccn dnly givsr whcn
tGlGcoei€d, wh dc[vtrcd pcfiooally inwritlng orwhoa dEpodtd into tbclrilitcd Stmemail, m
the following addrssoc:
If b Rocky Itirotain Powcr: nocky Moulain PoworAtu Bldnwcoe
Rogioral Businose Ittaoagc
1569 Wert No,rft Tooplc
SaltLakcCity, UT t4ll6
\f,i&a copy bi nookyfrlominPorcr
Atu rtoHcramn
C\ubm.cr & Rogulatory Lietom
E25 NE Multnmah, Suib 800
PortlaD4 OB,YI?sz
If to Buycr:Ideho FallE Powcr
Atur: Gancralllflaregc
FOBox sfilfr
l/m S @ihl Avcouc
Idaho Falls, ID 83405
or to uch o&er addrcr as Buyu a Ro*y Moutain Powrr may dorigoato itr vfitting.
13.5 lnugrat d Alrcffircot Thfu Agffit rhca cxoqrf( amtfturce fto ouffrorgomt bcfura tLe Prtlor hctio, ad rycnadcs rd rcge dl pric lhc c*teorim
agwmts and ufurrodtng, onl md wrilco, bctwcco thcPrtica hde with rcapcd tothr
AslEts.
13.6 Count€rpsilr. lticAgrct may bo G*GqrEd intwo counEpart& oach of vhich
shdl for all pupooco bc datrGd to bo u clglrd md bd ofwhlch sha[ oodtrrtc mc nd thc
sano irtrumt.
bcArtNrrAg@ htptof la
IN WITNffiS WHEREC)F, the Partice baw sigrcd this Agtpefircot as oftbc dst€
firct above wdtten
BIIYER:ROCKY MOT'I{TAIN PO\TDR
By:
Namo:
Tirlo:
By
Nmo:
Titlc:
AITESft
By:
Nasrc:
Title:Cm LtEl*,-C\T\ oP bffr\o f+tl,g
Sfutril
Prge, of14
ItAlror
ArrdPrldtcAglrrtror
Dlf,IBITA
I}ESCBIITION OT ASEEB
Art
ProgrilyYrlmlhn
Srb ln Plan -Dlatt[on Frrlll0o
For: ld.ho Frlla ld.ho . grnd, Dorlt
ArtVeluilon
Irbrlel lJtrHchulp0m AOOOII|I Ylfi!. ([ntlllrY Seler
Pdo
PO!.Efifi)OD,t6'Cl3
col{DuT#
CABE, t G, fIn/,!Ii0AL4PtJ(
XFlrl&FOtE 75,7J
xFM&W,ilirv,6011BI.EH
xFltil&cr,151o,1*5
xFtt R cr,6qrlm5
Tdd
ctuArrlthobAfrm
I
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3
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I
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365w
368
370
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158
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1"3!5
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7,m
0
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hltl0dlt
Roclg Xountrh Powcr
Prcpoecd S.b h Pl*., ldrho Falb, lddto. Slndy Downr
Vaho of hvcnbryr
8rlcrPrlceDrslodm
Plart h Sr{ceilm#t
908
Plmt h Eenloo
lncoleTaxc
Srlc Prlcr - Erldng Artr
gxpenac
SapgUon Oocts
12 Months hgrue @ l8nt
Led/Ilmsmton Ooets
Tdl Bpunr
Tohl trb Prlcr
ffiluArclPrrohrAgwrt
Fde, Totm ad Fhrhm
{.ffirgmnd Oorddt
ttn0egrund Ooductm grd DcrlcelJrrTffirmr
11,366
$r07
Vrc
$,000
18,880
02,106
$,600
$10,s0
$3,m0
04.3,293
$48,483
$50,t|@
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EXEIBI]I}
BILLOTSAI.E
ROCKYMOUNTAINFOWER
qTY OF IDAHO FALIS, IDAtrO
FOR VALUABIB COXSIDERATION hbliry FII,TY-NINB IIIOUSAT{D FOIrR
HUNDS,ED SIXTY lod NINE DOLIIRS ($59,469), ficrceipt of*trich iehenby
aoknowbdgp4 nodcyMmbinPofftrCgdlEf),hcttbygrmf,bilgdtrr, ldbrtddcttwnb ldaho
Falls ('Buyo/), prmuart tornAclEt Purrhrsc &tu.mcut rHa of_alt oftn
ri6t. dth. Brd itrlcrc* in adbdlofhcAffillrrcdooBfilbltA.athclrod.tosaidArldlEchrqo
Agmanl rnd freemtly in tbcpwlot ofSdlcr.
TIIE ASSE'N ARB SOI.D AND DEI.IVERED IOBI'YER TAS IS, WHERB IS."
ROCXY MOI,NTAIN FOWER IIBRBBY DISCI,AIMS AIIID EXCT.T,DEII
IIEREX'ROT{, (A) ANY EXPRBSS OR IMPTIBD REFRSTETTIATION OR WANNANTY AS
r0 TIIE VAIIJ4 @NDtrtON. DBSICN, OPERATION, OR QUALITY OF Tm
MAItsRIAI^S OR WORKMAtNtm IN, OR AI{Y DBBBCTS IN, TIrB ASSETS, (B) At{Y
EXPRBSS OR IMP[.IE) WARNANTY OF MERCHANTABILXIY OR FITNBTIS FOR T'SB
oR FoR A pARrrCrJr.AR prrRBO$B OR (C) AI{y m|PRESS OR IMPLtrE)
REFBESETTTATIOI{, GUARAI'IIBB OBtIGATION, LIABITIIY OR W{RRANTY OP
SEJAR. EXTBESS OR IMPLID, OP ANT KIND, ARISING BYI,AW OR EROM
COI'RTIE OF PBTORMANCB, COT'RSB OF DtsALING, ON I'EAGE OF TRADE
DAIBDtHS-dayof- ?tr-.
ROCKY MOIINTAIN POWR.
By
t{@c: fudnAllco
fitlc: Mmgsr,Dnildhdm
h.laof la