20240216Final_Order_No_36094.pdf

ORDER NO. 36094 1

Office of the Secretary
Service Date
February 16, 2024

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE JOINT
APPLICATION FOR APPROVAL OF THE
ASSET TRANSFER AGREEMENT
BETWEEN ROCKY MOUNTAIN POWER
AND THE CITY OF IDAHO FALLS—GOOSE
LAKE
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CASE NO. PAC-E-23-25

ORDER NO. 36094

On December 8, 2023, Rocky Mountain Power, a division of PacifiCorp, (“Company”),
and the City of Idaho Falls (“City”) jointly applied for an order approving the transfer of electric
facilities serving one customer of the Company to the City. This asset transfer would occur in
parallel with the transfer of the customer’s service for two vacant, unmetered lots from the
Company to the City. The Company asserts that the proposed transfer complies with Idaho Code
§ 61-328.
On December 29, 2023, the Commission issued a Notice of Application, Notice of
Modified Procedure, and Notice of Telephonic Hearing. Order No. 36043. The Commission held
a telephonic hearing on January 18, 2024. No members of the public testified. Commission Staff
(“Staff”) filed comments supporting the Application. No other comments were received.
Based on our review of the record, the Commission now issues this final order approving
the Company’s Application.
BACKGROUND
In 2017, the Company and City formed a Service Allocation Agreement (“Agreement”) to
decrease service duplication and increase stability in their service areas. The Agreement permits
the transfer of a customer’s service between the parties if the utility acquiring the customer pays
the other just compensation for lost revenues and distribution facilities used to service the
customer.
THE APPLICATION
The proposed transfer would result in the transfer of a customer’s service for two vacant,
unmetered lots from the Company to the City. Because the lots are vacant and unmetered, the
$1,065.97 proposed sale price reflects the value of the equipment servicing the customer without
the prior twelve months of revenue which is contemplated in the Agreement. The Company asserts

ORDER NO. 36094 2

that the proposed transfer complies with Idaho Code § 61-328 because it will reduce service
duplication without increasing rates for other customers. Thus, according to the Company, the
transaction will fulfill the customer’s request to transfer their electrical service to the City, an entity
with a bona fide intent and financial ability to serve the customer.
STAFF COMMENTS
Staff evaluated the Company’s Application and believed it follows the Electric Supplier
Stabilization Act (“ESSA”) and prior Commission orders. Staff also believed that the proposed
transaction complies with Idaho Code § 61-328. Accordingly, Staff recommended approval of the
proposed transaction.
Regarding compliance with Idaho Code § 61-328, Staff believed that the transaction serves
the public interest because it fulfills the customer’s request to be served by the City. Additionally,
Staff verified that the $1,065.97 proposed sale price includes the replacement book value of the
existing assets necessary to serve the customer, separation costs, legal expenses, and transaction
costs, pursuant to the Agreement, but not lost revenues because the service being transferred is for
vacant, unmetered lots. Staff noted that the method the Company used to calculate the proposed
sale price complies with the Agreement and prior Commission orders. Furthermore, the City
confirmed that, as a subdivision of the State of Idaho, it has the bona fide intent and financial
ability to provide service to the transferred customer.
COMMISSION FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-328 and 61-332
et seq. The Commission has reviewed the record, including the Application and comments.
Specifically, as required by Idaho Code § 61-328(3), the Commission finds that the property
transfer is consistent with the public interest, will not increase the cost of rates for supplying
service, and the private party acquiring the property being transferred has the bona fide intent and
financial ability to operate and maintain it. Additionally, the proposed transfer follows the ESSA
and prior Commission orders. Accordingly, we find it reasonable to approve the Application.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application is approved. The transfer of
the electric service and related electric facilities serving the Company’s customer identified in the
Application to the City of Idaho Falls is approved.

ORDER NO. 36094 3

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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 16th day of
February 2024.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

Monica Barrios-Sanchez
Commission Secretary

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