20200421Final_Order_No_34638.pdf

ORDER NO. 34638 1

Office of the Secretary
Service Date
April 21, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF ROCKY MOUNTAIN
POWER’S APPLICATION FOR APPROVAL
OF THE SUNNYSIDE/HOLMES STREET
ASSET TRANSFER AGREEMENT
BETWEEN ROCKY MOUNTAIN POWER
AND THE CITY OF IDAHO FALLS
)
)
)
)
)
)
)
)
)

CASE NO. PAC-E-20-01

ORDER NO. 34638

On February 24, 2020, Rocky Mountain Power (“Company”) filed an Application
requesting approval of an asset transfer agreement (“Agreement”) between the Company and the
City of Idaho Falls (“City”). Under the Agreement, the City would buy Company electric facilities
that the City needs to provide electric service to three customers. The Company submitted its
Application under the Idaho Electric Supplier Stabilization Act (“ESSA”)—Idaho Code §§ 61-
332 through 61-334C—and Idaho Code § 61-328, which states that the Commission “shall issue
a public notice and shall conduct a public hearing upon the application (emphasis added).”
On March 12, 2020, the Commission issued a Notice of Application and Modified
Procedure, setting an April 7, 2020 comment deadline and an April 14, 2020 reply comment
deadline. Commission Staff filed the only comments and supported the Company’s Application.
The Company did not file reply comments. Further, on March 24, 2020, the Commission held a
public hearing for customers under Idaho Code § 61-328. No one testified at the hearing.
Having reviewed the record, the Commission enters this Order approving the
Company’s Application.
THE APPLICATION
The Company and the City signed a service allocation agreement in 2017 to reduce
duplication of service and promote stability in their respective service areas. The Commission
approved the service allocation agreement in Case No. PAC-E-17-12, Order No. 33943.
Under the Agreement, the City will provide electric service to three of the Company’s
customers in Idaho Falls: the first on Holmes Avenue, the second on South 25th East, and the third
on Sunnyside Road. The City will purchase the electric facilities from the Company necessary to
serve these customers and will also compensate the Company for the lost revenue from the
ORDER NO. 34638 2

customers. Under the service allocation agreement, “just compensation for lost revenues is the
amount equal to 167% of the total of the respective customers’ electric bills from the prior twelve-
month period.” Application at 3. The Company requested the Commission approve the
Agreement.
STAFF COMMENTS
Staff recommended the Commission approve the Company’s Application. Staff
determined the transaction complied with the ESSA, the Idaho electric utility asset transfer statute,
and previous Commission orders. Upon its review, Staff believes the $31,771 purchase price
represents the fair market value of assets being transferred, plus the associated transaction costs
and 167% of the transferred customer’s previous 12 months of electric bills, and conforms to the
requirements of Idaho Code and prior Commission orders. Staff also verified that the method used
to calculate the value of the transaction is consistent with the method prescribed in the 2017 service
allocation agreement.
Through discovery, Staff confirmed that the cost of and rates for supplying service will
not be increased by the transaction, and that the City has the bona fide intent and financial ability
to operate and maintain the transferred property in the public service. See Idaho Code § 61-328(3).
Staff also learned through the discovery process that the customers being transferred to the City
requested the transfer, and therefore no additional notification of this transaction was provided to
them.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-328 and 61-
333. The Commission has reviewed the record, including the Agreement and comments of Staff.
We find the Agreement satisfies the ESSA (Idaho Code §§ 61-332 through 61-334C), Idaho Code
§ 61-328, the 2017 service allocation agreement, and this Commission’s prior orders. Accordingly,
we find it reasonable and in the public interest to approve the Application and Agreement.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application is approved. The sale of
electric facilities and transfer of service territory as contemplated in the Company’s Agreement
with the City is approved, effective on the service date of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
ORDER NO. 34638 3

decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 21st
day of April 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Diane M. Hanian
Commission Secretary

I:\Legal\ELECTRIC\PAC-E-20-01\orders\PACE2001_final_mh.docx