20200306Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KIELLANDER
COMIVIISSIONER RAPER
COMIIISSIONER ANDERSON
COMMISSION SECRETARY
COMNIISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: MARCH 5,2020
SUBJECT:IN THE MATTER OF ROCKY MOUNTAIN POWER'S APPLICATION
FOR APPROVAL OF THE SUNNYSIDE/HOLMES STREET ASSET
TRANSFER AGRBEMENT BETWEEN ROCKY MOUNTAIN POWER
AND THE CITY OF IDAHO FALLS; CASE NO. PAC-E-20-01
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 will purchase certain electric
facilities currently owned and used by the Company to provide electric service to three
customers. The Company submits its Application under ldaho Code 5 6l-328, which states that
the Commission "shall issue a public notice and sholl conduct a public hearing upon the
application (emphasis added)."
THE APPLICATION
The Company and the City entered into a service allocation agreement in 2Ol7 to
reduce duplication of service and promote stability in their respective service areas. Application
at 2. 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 25ft East, and the
third on Sunnyside Road. Id. at 1. 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 customers. Id. Under the service allocation agreement, 'Just compensation for
IDECISION MEMORANDUM
lost revenues is the amount equal to 167%o of the total of the respective customers' electric bills
from the prior twelve-month period." Id. at3.
The Company requests the Commission approve the Agreement, and that the case be
processed under Modified Procedure. Id. at 4.
STAFF RECOMMBNDATION
Staff recommends the Commission issue a Notice of Application, Notice of Modified
Procedure, and a Notice of Telephonic Public Hearing. Staff recommends comments due by
April 7, 2020 and reply comments due by April 14, 2020. Staff recommends the Commission
schedule a telephonic public hearing in the same time frame in order to comply with the public
hearing requirementin Idaho Code * 6l-328.
COMMISSION DECISION
Does the Commission wish to:
1. Issue a Notice of Application, Notice of Modified Procedure, and Notice of
Telephonic Public Hearing; and
2. Set an April T, 2020 comment due date and an April 14,2020 reply comment due
date?
Matt
Deputy Attorney General
I:Uf, gail\ELECTzuc\PAC-E-20-0 I \mcmos\PACE200 l -dcc memo_mh.dm
2DECISION MEMORANDUM