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HomeMy WebLinkAbout20190624Application.pdfY ROCKY MOUNTAIN BP,}Y,E,^.8.",, RECE IVED l0l9 JUllZtr Pll lr 08 1407 W. North Temple, Suite 330 Salt Lake City, Utah 8416 June24,2019 ri];ti"lC i:TUELIC .[H-lTtE$ COMMTSSTON VA OVERNIGHT DELIVERY Diane Hanian Commission Secretary Idaho Public Utilities Commission 472W. Washington Boise,ID 83702 Re:CASE NO. PAC.E-19.09 IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE SUNNYSIDE ASSET TRANSFER AGREEMENT BETWEEN ROCKY MOUNTAIN POWER AI\[D TTTE 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 Falls' Joint Application for approval of the asset purchase agreement and transfer of electric service on Sunnyside as described in this Application. Very truly yours, Vice President, Regulation Enclosures Daniel E, Solander (ISB# 8931) Rocky Mountain Power 1407 W. North Temple, Suite 320 Salt Lake City, Utah 84116 Telephone: (801) 220-4014 Email: daniel.solander@pacificom.com Attorneyfor Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION R EC E IVED i0lt JUH 2h Pll Zr 3? iU,l.lJi) irUHLlC i i i*i"f ii:ii C0MMISSI0N IN THE MATTER OF THE ) APPLICATION FOR APPROVAL OF ) SUNNYSUDE ASSET TRANSFER ) AGREEMENT BETWEEN ROCKY ) MOUNTAIN POWER AI\D THE CITY ) oF IDAHO FALLS ) CASE NO. PAC-E-19-09 APPLICATION OF ROCKY MOUNTAIN POWER Rocky Mountain Power, a division of PacifiCorp (the "Company"), pursuant to provisions of the Electric Stabilization Act, I.C. $ 61-332, 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 Idaho Falls to purchase certain electric facilities currently owned and utilized by the Company to supply electric service to one customer on Sunnyside Road, 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 WestNorth Temple, Suite 320 SaltLake City, Utah 841 16, is authorized to do and is doing business in the state of Idaho. The Company provides retail electric service to approximately 80,000 customers in the state and is subject to the jurisdiction of the Commission. The Company's retail certificated service territory encompasses portions of Fremont, Madison, Teton, Clark, Jefferson, Lemhi, Oneida, Bannock, Franklin, Caribou, APPLICATION OF ROCKY MOLINTAIN POWER Page 1 Butte, Bingham, Bear Lake, and Bonneville counties. Rocky Mountain Power is a public utility in the state pursuant to ldaho Code $ 61-129. 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. 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 respective customers' electric bills from the prior twelve month period. In addition, the acquiring utility would purchase the poles, wires, cross arrns, insulators, guys and other APPLICATION OF ROCKY MOLTNTAIN POWER Page2 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 purchase the facilities described in Exhibit A and to pay 167 percent ofthe customers' previous twelve months electric bills, as shown in Exhibit B to the Asset Purchase Agreement. II. REOUEST FOR SERVICE AREA EXEMPTION 7. Rocky Mountain Power and the city of ldaho 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 customer 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 : (801) 220-2963 Fax: (801) 220-2798 Email : ted.weston@fracifi corp.com daniel.solander@oacifi corp.com 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: APPLICATION OF ROCKY MOUNTAIN POWER Page 3 By e-mail (preferred) datarequest@nacificorp.com By regular mail 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. CONCLUSION 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 Transfer Agreement; and 3) authorize the transfer of electric service for the customer located on Sunnyside Road as described in Exhibit B to the Agreement between Rocky Mountain Power and the city of Idaho Falls. DATED this 24th day of June,2019. Respectfully submitted, By thh Daniel E. Solander Attorney for Rocky Mountain Power APPLICATION OF ROCKY MOUNTAIN POWER Page 4 ATTACHMENTA ASSET Tf,ANSf,f, AGNEEIIINT BETWEMT ROCXil MOIINTAIN FOTX'f,N AIIIT CTry OT IDAEO trAIIS, IDAK) Ttis &stt Trmtfu Agt!.ilFrt (ttc "Agrmcfl, ded tLil E dal' ofluna, All9 ir bctwa CIty of Idato Fdl+ Idrho, a dcipl ocpafu ofltc $aa of ld*o &Ua Idsho Fdh pffi, (lCittry od Padf0up, a Orcgm'oo6Pdic, d/Ua in trdab er Rocty Mout"in Powrt fRo*y Motffiitr Forcr'). Roc&y l*omh Powcr ud City ua mctimc rtetred to collociirrr*y ar'Tuticf, ad indfryi&nlly as ?utyl WHR,BAS, Ro&ytltroffiin Pwcr cundy tcruo! rqtuGr d TUZB^ Sufddo Rd. odmuoprficlilaty dcscdbcd in BhibitA ffidtorhirAgr@ldd tprpmpA hcda;ad WIilREAq ffiy hrs lgtEod o porrtrs 6c A*E from Ro&yllffiin Pow ud noc&ytrimtrin Powchattyagru b ldl ftc Arrctuto Gtyin acoordmwifr od drootb all of 6c terur od mrtitinr of nlc ar crpluod tillin, ud in aooorduoc wi& tho Scrvie dlootion Agrma cdlrd i6 by Ro*y ltfmdn Powu md Gty, dd Odcr 9, 2017, a4 rypovod by ftG lhho hblic Uflitics Cmirdm m Doocder 5,X)11', d WIIB,BAS, Cltyhrr tgrcd b srrc 6c cpffi! rfufrtrdog fu fuililir ontdly Eyiry frre ffien, in rudom wifr nd leiodb dl offu @ ad coodili(E ofsrb ar ryecod honin; md N0f,t, fiIBEfORE, frr aill in cmidcrdio offu mut prdrcr otlcovffi aod onditime sct ftrfr in frir Agracu, ftc ufidcocy of rhich b tcdy mrlly reoreldged d rcoapla4 trE Patic! hrcb rgrc r frllorx 1.@. Fc prpolcc of eb Agumcm, b trlorying @ rrd Edn hil d &rdr dafinql hcdn rhdl tetrc frG frlhring noming {ft€n ud vi& ioidd cryidfrdio, stdcr singulfiaphntl: l.0l 'Asetf, trrcus thoae foflirficr r"rUV *rrA by Rocky frfmfdn Portr, tt dcscdbcdfuBfiibitA" l.Uz "Cormissim" mems lte rdrhn hrhlic Utilitics Conmission. 1.03 'Trmcerrod (lntmcrr"mlftc Gtuctcfrrtwilt bctu*lrtdb l&ho Falls Posc u a rrrnlt of ftir ruaim od u,tom mobr mrrhcrs E! fisd in Eilhim B. l.(X 'Ttmsftr llilc' ms thc d& qm ufric,h dt d$c Ttm&rod fttmcn &altbcmc fto orsmers oflilab FrIs Pwe. bF.[rCiOrUHoAgGhlEf dU z. Srle,pil@e-qf-As*. 2.Ol AreEtr_tq le_Uo.l4 TtG Als tu will bc mfiutd b city u a rcailt offteTffi @r bciry E rcd by City rc dcrtfred in F$ih A" LV2 Mres ru9o. Tho Pu*ace Price for &o Arosr shall be $9,449 2.(B Prlmcofi. 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