20200612Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER AI\DERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HI'NTER
DEPUTY ATTORNEY GENERAL
DATE: JUNE 12,2020
SUBJECT:IN THE MATTER OF ROCKY MOUNTAIN POWER'S APPLICATION
FoR APPROVAL OF THE PIONEER ROAD / RUSTIC LANE I ITTH
SOUTH ASSET TRANSFER AGREEMENT BETWEEN ROCKY
MOUNTAIN POWER AIID TITE CITY OF IDAHO FALLS; CASE NO.
PAC-E-20-06
On May 22, 2020, Rocky Mountain Power ("Company") applied for Commission
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 ten customers. The
Company submits its Application under ldaho Code $ 6l-328, which states that the Commission
"shall issue a public notice and shall conduct a public hearing upon the application (emphasis
added)."
THE APPLICATION
The Company and the City entered into a service allocation agreement in 20t7 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 ten of the Company's
customers in Idaho Falls: five customers on Rustic Lane, one customer on Pioneer Road, and the
four customers on lTth South. Id. at l. 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
DECISION MEMORANDUM
lost revenues is the "amount equal to 167 percent 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 authorize the
transfer of electric service for the ten customers presently served by the Company. Id. at 4.
STATT' RECOMMENDATION
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
August 3,2020 and reply comments due by August 10,2020. Staffrecommends the Commission
schedule a telephonic public hearing in the same time frame in order to comply with the public
hearing requirement n ldaho 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 August 3,2020 comment due date and an August 10,2020 reply comment
due date?
Matt Hunter
Depug Attomey General
I:\Legal\ELECTRIC1PAC-E-20-06\nemos\PACE2006_dec memo_mh.doc
2DECISION MEMORANDUM