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HomeMy WebLinkAbout20231208Application.pdf 1407 W. North Temple, Suite 330 Salt Lake City, UT 84116 December 8, 2023 VIA ELECTRONIC DELIVERY Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd Building 8 Suite 201A Boise, ID 83714 RE: CASE NO. PAC-E-23-25 IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE ASSET TRANSFER AGREEMENT BETWEEN ROCKY MOUNTAIN POWER AND THE CITY OF IDAHO FALLS – GOOSE LAKE Attention: Commission Secretary Enclosed for electronic filing in the above-mentioned matter are Rocky Mountain Power’s and the city of Idaho Fall’s Joint Application for approval of the asset purchase agreement and transfer of electric service for the customer as described in this Application. Informal inquiries may be directed to Mark Alder, Idaho Regulatory Manager at (801) 220-2313. Very truly yours, Joelle Steward Senior Vice President, Regulation and Customer & Community Solutions RECEIVED Friday, December 8, 2023 3:41:25 PM IDAHO PUBLIC UTILITIES COMMISSION APPLICATION OF Page 1 ROCKY MOUNTAIN POWER Joe Dallas (ISB# 10330) PacifiCorp, Senior Attorney 825 NE Multnomah Street, Suite 2000 Portland, OR 97232 Email: joseph.dallas@pacificorp.com Attorney for Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION FOR APPROVAL OF THE ASSET TRANSFER AGREEMENT BETWEEN ROCKY MOUNTAIN POWER AND THE CITY OF IDAHO FALLS – GOOSE LAKE ) ) ) APPLICATION OF ) ROCKY MOUNTAIN POWER ) ) Rocky Mountain Power, a division of PacifiCorp (the “Company”), pursuant to provisions of the Electric Stabilization Act, I.C. § 61-332, et. seq., and I.C. § 61-328, hereby files this application with the Idaho Public Utilities Commission (“Commission”) for approval of the Asset Transfer Agreement (“Agreement”) between Rocky Mountain Power and the City of Idaho Falls (“City”). This Agreement provides for the City to purchase certain electric facilities currently owned and used by the Company to supply electric service to a customer (“the Customer”) as more particularly described in the Agreement file concurrently with this Application. In support of this Application, Rocky Mountain Power states as follows: 1. Rocky Mountain Power, a division of PacifiCorp, an Oregon corporation, located at 1407 West North Temple, Salt Lake City, Utah 84116, is authorized to do and is doing business in the State of Idaho. The Company provides retail electric service to approximately 88,000 customers in the state and is subject to the jurisdiction of the Commission. The Company’s retail certificated service territory encompasses portions of Fremont, Madison, Teton, Clark, Jefferson, Lemhi, Oneida, Bannock, Franklin, Caribou, APPLICATION OF Page 2 ROCKY MOUNTAIN POWER Butte, Bingham, Bear Lake, and Bonneville counties. Rocky Mountain Power is a public utility in the state pursuant to Idaho Code § 61-129. 2. The city of Idaho Falls, which is located in Bonneville County, owns and operates an electric power system within the municipal boundaries of the city for the convenience of its citizens. The Company is transferring service and facilities to the City, and the City has a bona-fide intent and financial ability to provide service to the Customer being transferred. The City’s municipal service territory is surrounded by Rocky Mountain Power’s service territory. The Company currently provides electric service to customers located within the boundaries of the City, and the City provides service to customers within the Company’s service territory. I. BACKGROUND 3. On October 9, 2017, Rocky Mountain Power and the City entered into a Service Allocation Agreement to reduce duplication of service and promote stability in their respective service areas. The Service Allocation Agreement was approved by the Commission on December 5, 2017.1 4. The Service Allocation Agreement specifies that existing customers as of the date of the agreement would continue to be served by their current electric supplier irrespective of service territory boundaries. 5. The Service Allocation Agreement provides for the transfer of a customer’s electric service from one utility to the other as long as the acquiring utility agrees to pay the utility currently providing service just compensation for lost revenues and the distribution 1 In the Matter of the Join Application of the City of Idaho Falls and Rocky Mountain Power for Approval of a Service Allocation Agreement, Case No. PAC-E-17-12, Order No. 33943 (December 5, 2017). APPLICATION OF Page 3 ROCKY MOUNTAIN POWER facilities used to serve that customer. The Company and the City agreed that just compensation for lost revenues would be an amount equal to 167 percent of the total of the respective customer’s electric bills from the prior twelve-month period of service. In addition, the acquiring utility would purchase the poles, wires, cross arms, insulators, guys, and other facilities no longer needed or required by the other utility to service that customer. 6. The Customer has requested that their electric service be transferred to the City and the Customer has been notified by the Company that it has entered into the Agreement to transfer service. The Company and the City have agreed to transfer electric service and the City has agreed to purchase the facilities described in Exhibit A of the Agreement, provided as Confidential Attachment No. 1 to the Application. The customer’s service is for two vacant lots without a meter so the sale price was based on the equipment needed to service the customer and not the prior twelve-month revenue. 7. The transaction complies with Idaho Code § 61-328. Specifically, it is in the public interest because it reduces duplication of services by the City purchasing the Company’s distribution facilities used to serve the Customer. Further, the Company will transfer service to the City and will be adequately compensated for the assets used to serve the Customer preventing any increase in costs or rates for service to remaining customers. The Customer requested that service be transferred to the City, and the City has the intent and financial ability to provide service to the Customer. II. REQUEST FOR SERVICE AREA EXEMPTION 8. Rocky Mountain Power and the city of Idaho Falls hereby jointly petition the Commission for approval of the Asset Transfer Agreement, provided as Confidential Attachment No. 1, and transfer of electric service, wherein Idaho Falls agrees to serve the load APPLICATION OF Page 4 ROCKY MOUNTAIN POWER of the Customer and pay the Company for the assets transferred, as well as the revenue reimbursement, legal, and transaction costs. III. CONFIDENTIAL INFORMATION This filing, specifically the Asset Transfer Agreement, labeled as Confidential Attachment 1, includes confidential information related to the Customer exempt from public review under Idaho Code §§ 74-104–109 and Idaho Public Utilities Commission’s Rule of Procedure 67. IV. COMMUNICATION 9. Communications regarding this Application should be addressed to: If to Rocky Mountain Power: Mark Alder Joe Dallas 1407 W. North Temple, Suite 330 Salt Lake City, Utah 84116 Telephone: (801) 220-2313 Email: Mark.Alder@pacificorp.com Joseph.Dallas@pacificorp.com If to the City of Idaho Falls: Idaho Falls City Power Bear Prairie 140 South Capital Avenue Box 50220 Idaho Falls, Idaho 83405 In addition, the Company respectfully requests that all data requests regarding this matter be addressed to one or more of the following: By e-mail (preferred) datarequest@pacificorp.com By regular mail Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, OR 97232 APPLICATION OF Page 5 ROCKY MOUNTAIN POWER V. MODIFIED PROCEDURE 10. Rocky Mountain Power believes that a hearing is not necessary to consider the issues presented herein and respectfully requests that this Application be processed under Modified Procedure, i.e., by written submissions rather than by hearing, in accordance with Idaho Public Utilities Commission Rules of Procedure 201 – 204. VI. CONCLUSION WHEREFORE, Rocky Mountain Power and the city of Idaho Falls respectfully request that the Commission: 1) issue an order authorizing this Application to be processed under Modified Procedure; 2) issue a final order approving the Asset Transfer Agreement; and 3) authorize the transfer of electric service for the Customer from Rocky Mountain Power to the city of Idaho Falls. DATED this 8th day of December 2023. Respectfully submitted, By _______________________________ Joe Dallas Attorney for Rocky Mountain Power ATTACHMENT NO. 1