20200625Comments.pdf

Ri: C E IVES
:i?* JUri 25 Pl{ 12: 0lDAYN HARDIE
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720.0074
[phone]
IDAHO BAR NO. 9917
Street Address for Express Mail;
II33I W CHINDEN BVLD, BLDG 8, SUITE 2OI.A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ROCKY MOUNTAIN
POWER'S APPLICATION FOR APPROVAL
OF A LEASE AGREEMENT WITH EXTENET
SYSTEMS INC.
CASE NO. PAC-E-20-05
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Dayn Hardie, Deputy Attorney General, submits the following comments.
BACKGROUND
On May 7.2020, PacifiCorp dba Rocky Mountain Power ("Company") applied to the
Commission for an order approving a Lease Agreement ("Lease") between the Company and
ExteNet Systems Inc. ("ExteNet"). The Company submitted its Application under ldaho Code
$$ 61-328 and 61-332, et. seq. The Company requested its Application be processed under
Modified Procedure.
The Lease allows ExteNet to use Company-owned streetlight poles to place small cell
wireless facility attachments throughout the Company's service territory in Idaho. The Lease has
a term of ten-years with automatic one-year renewals until terminated by either party.
ExteNet will pay a per-pole application fee, processing and review fee, and an inspection
fee. ExteNet will submit applications to the Company to use individual streetlight poles. The
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STAFF COMMENTS JLINE 25.2020
Company will grant or deny those applications. ExteNet estimates it will eventually place cell
facilities on 125 streetlight poles.r Service to ExteNet will be provided under the Contpany's
Electric Service Regulation No. 4-supply of service to allow unmetered service to small usage
devices.
STAFF REVIEW
Staff recommends the Commission approve the lease agreement between the Company
and ExteNet. Staff believes the transaction meets the legal requirements set by ldaho Code
S 6l-328. To meet these requirements, the Commission must find that: (1) the transaction is in
thc public interest; (2) the costs and rates for supplying service will not be increased due to this
transaction; and. (3) the applicant has the bona fide intent and financial ability to operate said
property.
The transaction is in the public interest because it will generate revenues for the
Company which will reduce the cost to serve customers. The Lease includes several provisions
that protect the Company, and therefore customers, from any potential liability arising under thc
Lease. These protections include: mandatory insurancc requirements for various situations, an
indemniflcation clause, requirements for ExteNet to maintain and repair its equipment at its own
expense, assurances that the Company will not incur outages 10 meet ExteNet's deployment
schedule, sublease and assignment provisions, and provisions for penalties if the Company is
required to remove ExteNet's equipment. Additionally, the Company will record the costs
associated with the Lease separately, providing customers an additional layer of protection.
The costs to serve customers will not increase due this transaction. ExteNet will pay lor
the energy that their devices use under Electric Service Regulation No. 4. l'he Lease also
provides for additional revenue for the Company that will be used to credit the cost to supply
service to the general body of customers. The Company will separately account for the
administrative costs of this program. Staff \\,ill be able to review those costs and recommend
disallowances of any,costs that exceed the benefits of the Lease in any future rate proceedings.
I The Application states that the best estimate of the rate of placement is to assume the cell facilities will be placed
on l2 streetlight poles per year during the ten-year tenn of the Lease.
STAFF CON{MENTS JI-INE 25,20202
The applicant has the bona fide intent and financial ability to operate the system.
ExteNet was foundedin2O02 and has a market valuation of $1.4B. This gives Staff a reasonable
level of confidence that ExteNet can maintain its infrastructure installed pursuant to the terms of
the Lease.
STAFF RECOMMENDATIONS
Based on its review and the fulfillment of the requirements of ldaho Code $ 6l-328, Staff
recommends the Commission approve the Company's Application seeking approval of a Lease
between the Company and ExteNet.
Respecttully submitted,rri, t}+day of June 2020.
Attorney General
Technical Staft Joe Terry
Kevin Keyt
Rick Keller
Daniel Klein
i:umisc/comments/pace20.5dhjlkkrkdk commenls
JSTAFF COMMENTS JUNE 25,2020
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 25th DAY OF JI'NE 2020, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, tN CASE NO.
PAC.E-20-05, BY E.MAILING A COPY THEREOF, TO THE FOLLOWING:
TED WESTON
ROCKY MOI.'NTAIN POWER
I4O7 WN TEMPLE STE 330
SALT LAKE CITY UT 84I 16
E-MAIL: [e-mail]
DATA REQUEST RESPONSE CENTER
E.MAIL ONLY:
datarequest@f'acifi corp.com
. L, /Z2r-r.'-*
srcnplleFv i - -
CERTIFTCATE OF SERVICE