20191004Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIE
DEPUTY ATTORNEY GENERAL
DATE: OCTOBER 4,2019
SUBJECT:APPLICATION FOR APPROVAL OF THE LINCOLN ROAD ASSET
PURCHASE AGREEMENT BETWEEN ROCKY MOUNTAIN POWER
AND THE CITY OF IDAHO FALLS; CASE NO. PAC-E-L9-13.
On September 25,2019, 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 ldaho Code
$$ 6l-328 and 6l-332, et. seq. 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, which was later approved by the
Commission. Application at 2, See Order No. 33943. Under the Agreement, the Company will
transfer electric distribution facilities with a book value of $7,013 and the right to serve one
customer to the City. Application at 1,3; Exhibit A, B. In exchange, the City will pay 167% of the
transferred customer's previous 12-months electric bills, which in this case adds up to $3,541.
Application at 3, Exhibit B. The total amount paid by the City to the Company as contemplated in
the Agreement, which includes separation costs, legal and transactional costs, tax gross up, plus
the above mentioned expenses, will be $14,686. 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
issue a Notice of Application, Notice of Modified Procedure, and a Notice of Telephonic Public
Hearing. Staff recommends a 2l-day public comment deadline, and a 28-day Company reply
comment deadline, with 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 public comments due in 21-days, and
Company reply comments due in 28-days with a telephonic public hearing before the Commission
deliberates?
Dayn Hardie
Deputy Attorney General
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