20230522Final_Order_No_35786.pdf

ORDER NO. 35786 1

Office of the Secretary
Service Date
May 22, 2023

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF ROCKY MOUNTAIN
POWER’S APPLICATION FOR APPROVAL
OF THE ASSET TRANSFER AGREEMENT
BETWEEN ROCKY MOUNTAIN POWER
AND THE CITY OF IDAHO FALLS —
BELLIN ROAD #1
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CASE NO. PAC-E-23-02

ORDER NO. 35786

On February 9, 2023, Rocky Mountain Power, a division of PacifiCorp (“Company”), and
the City of Idaho Falls (“City”) (together the “Parties”) applied to the Commission for approval of
an Asset Transfer Agreement (“Agreement”) between the Company and the City (“Application”).1
The Application outlined a process whereby the City would purchase certain electric facilities
currently owned and used by the Company, which serves one customer (“Customer”), at a location
in the immediate vicinity of Bellin Road, Idaho Falls, Idaho. The Company submitted its
Application for approval under the Idaho Electric Supplier Stabilization Act (“ESSA”), Idaho
Code §§ 61-332 et. seq., and the electric utility asset transfer statute, Idaho Code § 61-328.2
On March 10, 2023, the Commission issued a Notice of Application, Notice of Modified
Procedure, and Notice of Telephonic Hearing. Order No. 35702. The Commission held a
telephonic hearing on April 27, 2023. No members of the public testified. Staff filed comments
supporting the Application. No other comments were received. The Company did not file a reply.
Based on our review of the record, the Commission now issues this final Order approving
the Company’s Application.
BACKGROUND
The Company and the City entered into 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. The
Customer has requested that their electric service be transferred to the City. The Company and the

1 A less redacted copy of the Application was filed on February 21, 2023.
2 The Company requested its Application be processed under Modified Procedure. Typically, the use of Modified
Procedure contemplates written submissions without a live public hearing. However, Idaho Code § 61-328(2) states
the Commission “shall issue a public notice and shall conduct a public hearing upon the application.”. Idaho Code §
61-328(2) (emphasis added).

ORDER NO. 35786 2

City have agreed to transfer electric service and the City has agreed to purchase the facilities
described in Attachment No. 1 of the Company’s February 21, 2023, filing. Under the Service
Allocation Agreement, the City compensates the Company for lost revenues arising from the
Customer’s departure in the amount equal to 167% of each customer’s electric bills from the most
recent 12 months of active provision of electric service. The City will pay separation costs and
legal/transactional costs based on the amount of the transaction. The City will also purchase poles,
wires, cross arms, insulators, guys, and other facilities no longer needed or required by the
Company to service the customers.
THE APPLICATION
The Customer requested its “electric service be transferred to the City . . . . The Company
and the City have agreed to transfer electric service and the City has agreed to purchase the
facilities described in Exhibit A.” Application at 3.
The Company asserted the Agreement complies with Idaho Code § 61-328 and is in the
public interest. The Company asserts the City has the intent and ability to provide electric service
to the Customer.
The City has agreed to pay the Company 167% of the Customer’s previous 12 months’
electric bills, plus the value of the transferred assets, tax gross-up, separation costs, and legal and
transactional costs pursuant to the terms of the 2017 Service Allocation Agreement. The total sale
price in the contemplated transaction is $13,631. Exhibit A.
THE COMMENTS
Staff analyzed the data provided by the Company. “Staff verified that the sale price listed
in the Agreement includes the replacement book value of the existing assets, the separation costs,
the lost customer revenue, and the legal & transaction costs.” Staff Comments at 3. Staff concluded
the asset transfer will not negatively impact other customers. Staff also verified the Company’s
depreciation determinations were correct.
Importantly, Staff also evaluated the Company’s Application under Idaho Code § 61-
328(3) and believed the proposed asset transfer promotes the public interest, will not increase the
Customer’s rates, and that the City has the bona fide intent and financial ability to maintain service
for the Customer. Accordingly, Staff believed the proposed asset transfer complies with all
requirements of Idaho Code § 61-332 and Idaho Code § 61-328. Staff also believed the proposed
asset transfer complied with the Company’s and the City’s 2017 Service Allocation Agreement.

ORDER NO. 35786 3

COMMISSION FINDINGS AND DISCUSSION
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
Commission Staff. We find the Agreement satisfies the ESSA, Idaho Code § 61-332 et seq., and
the electric utility transfer statute, Idaho Code § 61-328. Specifically, as required by Idaho Code
§ 61-328(3), the Commission finds that the asset transfer is consistent with the public interest, will
not increase the cost of rates for supplying service, and the City has the bona fide intent and
financial ability to operate and maintain the relevant property for public service. The Commission
also finds the asset transfer to be consistent with the 2017 Service Allocation Agreement, and this
Commission’s prior orders. Based on the record, the Commission finds the Agreement conforms
to the ESSA’s provisions and purposes because it will avoid facility duplication and promote
harmony between the electric suppliers. Accordingly, we find it reasonable to approve the
Application and the 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 from the Company to the City is approved,
effective upon the issuance 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 regarding any matter
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.
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ORDER NO. 35786 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 22nd day of
May 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\PAC-E-23-02 Bellin #1\orders\PACE2302_Final_md.docx