20190517Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: MAY 17,2019
SUBJECT:APPLICATION FOR APPROVAL OF THE PROFESSIONAL WAY-
BROADWAY ASSET PURCHASE AGREEMENT AND TRANSFER OF
SERVICE BETWEEN ROCKY MOUNTAIN POWER AND THE CITY OF
IDAHO FALLS; CASE NO. PAC-E-19-06.
On May 10, 2019 Rocky Mountain Power ("Company") filed an Application
requesting approval of the Asset Purchase Agreement ("Agreement") entered into by the
Company and the City of Idaho Falls ("City"). The Company submitted its Application under
Idaho Code $$ 6l-328,61-333. The Company requests its Application be processed by Modified
Procedure.
THE APPLICATION
This Agreement is submitted pursuant to the Service Allocation Agreement that the
Company and the City entered into on October 9,2017. Application at 2, See Order No. 33943.
Under the Agreement, the Company will transfer electric distribution facilities with a book value
of $16,701.00 and the right to serve six (6) customers to the City. Application at 3, Exhibit A. In
exchange, the City will pay 167% of the six (6) customers'previous twelve (12) months electric
bills, which in this case adds up to $9,492.57. Application at 3, Exhibit B. The total amount
paid by the City to the Company as contemplated in the Agreement, including separation costs,
legal and transactional costs, tax gross up, and the above mentioned expenses, will be
$31,751.00. Exhibit A.
STAFF RECOMMENDATION
Idaho Code $ 6l-328 states that the Commission "shall conduct a public hearing upon
the application." In order to fulfill this statutory requirement, Staff recommends the Commission
1DECISION MEMORANDUM
issue a Notice of Application, Notice of Modified Procedure, and a Notice of Telephonic Public
Hearing. Staff recommends a June 18, 2019 comment deadline, a June 25,2019 reply comment
deadline, and a telephonic public hearing scheduled before the Commission deliberates.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application, Notice of Modified
Procedure, and a Notice of Telephonic Public Hearing with comments due on, or before, June
18,2019, reply comments due on, or before, June 25,2019, and a telephonic public hearing
before the Commission deliberates?
Dayn Hardie
Deputy Attorney General
t:\Lega|\ELECTRIC\PAC-E-19-06\memos\PACE1906 dec memo dh.doc
2DECISION MEMORANDUM
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