app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF APPLICATION OF PACIFICORP FOR AN ORDER APPROVING THE SALE OF ITS INTEREST IN (1) THE CENTRALIA STEAM ELECTRIC GENERATING PLANT, (2) THE RATE BASED PORTION OF ITS CENTRALIA COAL MINE, AND (3) RELATED FACILITIES; FOR A DETERMINATION OF THE AMOUNT OF AND THE PROPER RATEMAKING TREATMENT OF THE GAIN ASSOCIATED WITH THE SALE; AND (4) AN EWG DETERMINATION. )
)
)
)
)
)
)
)
)
)
)
CASE NO. PAC-E-99-2

NOTICE OF APPLICATION

NOTICE OF INTERVENTION DEADLINE

NOTICE OF COMMENT DEADLINE

YOU ARE HEREBY NOTIFIED that on August 12, 1999, PacifiCorp (Company) filed an Application with the Idaho Public Utilities Commission (Commission) regarding the proposed sale by the Company of its 47.5% ownership interest in the Centralia steam generating plant (and related facilities) and the 47.5% rate based portion of its ownership interest in the Centralia Coal Mine. The purchaser of the Centralia generating unit is TECWA Power, Inc. (TECWA Power) and the purchaser of the Centralia Coal Mine is TECWA Fuel, Inc. (TECWA Fuel), both Washington corporations and both wholly-owned subsidiaries of TransAlta Corp., a Canadian energy corporation with $5 billion (Canadian) in assets and guarantor of certain obligations and duties undertaken by TECWA Power and TECWA Fuel. PacifiCorp seeks a Commission Order approving the sale of the Company’s interest in the Centralia steam generating plant and the rate based portion of the Centralia Coal Mine. Citing Idaho Code § 61-523--Valuation.
PacifiCorp also seeks a Commission Order adopting the Company’s methodology to calculate the gain associated with the sale and the proposed ratemaking treatment of the gain.
As represented in the Application, the owners of the Centralia facilities decided to sell the assets due principally to the possible need for additional capital expenditures to meet new air emission requirements and the potential impact of U.S. electric utility industry deregulation trends on the prospect for recovery of utility plant-in-service investment. The gross proceeds from the sale of the generating facility and the mine were allocated between the generating plant price of $452,598,000 and coal mine price of $101,400,000. The gross purchase prices are subject to certain adjustments which must be incorporated in any calculation of net gain. PacifiCorp’s share of the gain associated with the sale is estimated to be approximately $83 million on a system wide basis. The actual dollar value of the net gain on the sale will not be finalized until the close of the transaction.
The Company requests that its Application be processed pursuant to Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
The Company’s Application includes copies of the Centralia Power Plant Purchase and Sale Agreement and Centralia Coal Mine Purchase and Sale Agreement, other transactional documents and the prefiled testimonies of Company witnesses C. Alex Miller, Managing Director of Planning; Dr. Roger Weaver, Director, Regulatory and Strategy Support; and Anne E. Eakin, Vice President Regulation.

COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record in Case No. PACE992. The Commission notes that the Company in this case has also requested a Commission determination regarding classification of the Centralia generation facility as an “eligible facility” for purpose of subsequent operation by an Exempt Wholesale Generator (EWG). This matter has been handled by separate Notice issued August 31, 1999.
PacifiCorp has requested that the issues presented in its filing regarding sale of Centralia facilities, calculation of the gain, and related ratemaking treatment be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. The Commission expresses no opinion as to the appropriateness of Modified Procedure at this point but finds it reasonable to solicit comment on the proposed procedure.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comment regarding the Company’s proposed use of Modified Procedure in this case is Thursday, September 30, 1999.
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in Case No. PACE992 for the purpose of becoming a formal party, i.e., to present evidence, to acquire rights of cross-examination, to make and argue motions and to engage in discovery procedures must file a Petition to Intervene with the Commission pursuant to Rules of Procedure 72 and 73, of the Commission’s Rules of Procedure, IDAPA 31.01.01.072 and -.073. The deadline for filing a Petition to Intervene is Friday, September 17, 1999.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views without parties’ rights of participation and cross-examination are not required to intervene and may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that discovery is available to formal parties in Case No. PAC-E-99-2 pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.221-234. The parties should coordinate discovery requests and responses so they are able to comply with established filing deadlines.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. PACE992 should be mailed to the Commission and the Company at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983 C. ALEX MILLER
MANAGING DIRECTOR OF PLANNING
PACIFICORP
825 NE MULTNOMAH, STE 600
PORTLAND, OR 87232

GEORGE M. GALLOWAY
STOEL RIVES, LLP
900 SW 5TH AVE, STE 2600
PORTLAND, OR 97204
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the Application in Case No. PAC-E-99-2 can be reviewed at the Commission’s office and at the Idaho offices of PacifiCorp dba Utah Power & Light Company during regular business hours.

DATED at Boise, Idaho this day of September 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/N:PAC-E-99-2_sw

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF COMMENT DEADLINE 1

Office of the Secretary
Service Date
September 7, 1999