HomeMy WebLinkAbout2005-160 Agrmt - Pacific Power
. PACIFIC POWER
. UTA~-I POWER
INVOICE
Return To: #N/A
Medford Operations Center
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Name:
City of Ashland
Attn: Scott
20 E. Main Street
Ashland
DatE~: 7/21/2005
Street:
City:
Customer Acct.#
Qty Unit
1
State: OR
Zip: 97520
W.o.:
Employee:
Description
Transfer customers at 401 and 403 Dead Indian Memorial Road (Ashland
Airport) per our existing agreement with the City..
Unit Price TOTAL
$12,672.00
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$12,672.00
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Invoice costs are valid for only 90 days from invoice date/
Please remit payment to address at top of invoice.
Last Updated 07/03/02
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BEFORE THE
PUBLIC UTILITY COMMISSION OF OREGON
In the Matter of the Application )
of PACIFIC POWER & LIGHT COMPANY )
and THE CITY OF ASHLAND, OREGON )
for an Order approving the )
assignment of rights in )
allocated service territory. )
Docket No. tlA - .5 <./
14//- 0 I
APPLICATION
Pacific Power & ,Light Company (NPacific"), an as~;umed
b~~iness name for a portion of t~e electric utility operations
of PacifiCorp, 1 an Oregon corporation ,together with the City
of Ashlan~, Oregon ("City"), hereby apply for an order of 1:.he
Public utility Commission of Oregon (lIpUC"'), pursuant to the
provisions Qf ORS 758.400 et seq and OAR 860-25-010,
860-25-015, and 860-25-027, approving the assignment by Paeific
to the City of all rights Pacific acquired in and to certain
parcels of service territory heretofore allocated by the P1JC to
Pacific and described in exhibits attached hereto.
In support of this application, Pacific and the City
respectfully represent ~s follows: .
1. APPLICANTS
PacifiCorp's predecessor, Pacific Power & Light
Company, was incorporated under the laws of th~ State of Maine
on June 16, .1910. Pac.ific Power & Light Company was merged
1 The other operating electric utility division of
PacifiCorp is Utah Power & Light Company (UP&L), which serves
electric utility customers in the states of utah, Wyoming, and
Idaho. '
1
into PacifiCorp, the surviving Oregon corporation, on
January 9, 1989.
Pacific serves retail electric utility
customers in Oregon, Washington, California, Idaho, Montana..
and Wyoming. Pacific's principal offices are at the Public
Service Building, 920 SW sixth Avenue, Portland, OR 97204.
The City is located in Jackson County, Oregon, and is
a municipal. corporation of the state of Oregon. The city is a
preference customer of the Bonneville Power Administration, and
provides electric utility services to residents and businesses
within the City's corporate limits.
2. COMMUNICATIONS
Communications in regard to this application should
be addressed .as follows:
On behalf of Pacific:
Jack Samper
Vice President, ORCA Regton
Pacific Power. & Light Company
9120 Southwest pioneer Court, suite B
Wilsonville, OR 97070
On behalf of the City:
Brian Almquist,. City Administrator
City Hall
1175 East Main Street
Ashland, OR 97520
In addition, the PUC is respectfully requested to
send copies of all notices and communications to:
..
Ronald L. Salter, Esq.
94 Third Street
Ashland, OR 97520
.Attorney for the City of Ashland,
and to:
2
Thomas H. Nelson, Esq.
Stoel Rives Boley Jones & Grey
900 SW Fifth Avenue, suite 2300
Portland, OR 97204-1268
Of Attorneys for Pacific Power & Light Co~~any
3. PURPOSE OF TRANSFER
The purpose of the transfer is to carry out an
Allocation Agreement between the parties dated January 9, 1.990
("Agreement~). The Agreement, which is expressly conditioned
on PUC.approval, will settle longstanding legal disputes that
are reflected by two pending condemnation actions, viz.,
Ashland v. Pacificorp, Jackson County circuit Court Case No.
89-1096-L-2, andPacificorp v. city of Ashland, Jackson Cotlnty
Circuit Court Case No. 86-0553-J-l. In the former case, the
City sought to condemn Pacific's electric distribution
facilities within the area described in the attached exhibits,
and in the latter case Pacific sought compensation under an
"inverse condemnation" theory. The Agreement transfers th<<~
contested distribution facilities to the City in return for the
payment of $200,000, which amount includes up to $5000 in
physical separation costs that Pacific may incur in order .to
carry out the provisions of the Agreement.
The Agreement also attempts to prevent future
disputes from arising. ~or example, it establishes 'a long-
term service" boundary between the two systems, and provides
that for all future takings the City shall pay two (2) times
Pacific's gross annual revenues for facilities subsequently
annexed that are within the boundary, and six (6) times
3
Pacific's gross annual revenues for any facilities taken that
are, outside of the boundary. Finally, the Agre~ment leaves
open the possibility that Pacific may in the future sell
wholesale electric power and energy to the city. Pacific and
the City submit that for the foregoing reasons the Agreemen.t is
in the public interest.
No governmental franchises or permits are necessary
to effectuate the transfer contemplated .by the Agreement.
4. EXHIBITS
The following exhibits are provided in support of
this Application:
Exhibit 1: A copy of the January 9,
1990, Allocation Agreement.
.Exhibit 2: Maps showing the location
of facilities and customers affected,
adjacent facilities and facilities that
will interconnect with the transferred
facilities, together with a description of
the faci~ities. The.mapsdepict the areas
affected both before and after the
transfer.
Exhibit 3: A detailed description of
eqUipment and facilities transferred. (The
same description is attached to and
incorporated'in the the Agreement as
Exhibit A.)
Exhibit 4: A description by county,
section lines, river, highway, road,
street, or metes and bounds, designating
the boundaries of the old territories, the
transferred territory, and the resulting
new territories. (The same description is
attached to and incorporated in the
Agreement as part of Exhibit B.)
Exhibit 5: A map to scale showing
general location and boundaries 9f the two
service areas after the transfer. (The
4
same map is attached to and incorporated in
the Agreement as part of Exhibit B.)
The City has not issued a franchise to Pacific, and thus. a copy
cannot be provided. Pacific has paid a privilege tax to the
City for the right to distribute electric power within its
boundaries.
The Applicants respectfully request that the
foregoing application be granted.
DATED this 7l!lday of ~ ~990.
PACIFIC POWER & LIGHT COMPANY
CITY OF ASHLAND, OREGON
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ORDER NO. 9 1 - 347
ENTERED MAR 6 1991
BEFORE TIlE PUBLIC UTILITY COMMISSJ<;>N
OF OREGON
UA34
UP 61
In the Matter of the Application of )
PACIFlCOR~ dba PACIFIC POWER & ) -
LIGHT COMPANY, and THE CITY -OF )
ASHLAND, OREGON, to Transfer Allocated )
Territory. UA 34 )
)
)
)
)
ORDER
In the Matter of the Application of
PACIFICOR~ dba PACIFIC POWER &
LIGHT COMPANY, for Authority to Sell
Property. UP 61
DISPOSITION: APPLICATIONS GRANTED
DOCKET UA 34
On May 15, 1990, PacifiCorp, dba Pacific Power & Light COJmpany,
and the City of Ashland filed a joint territorial allocation application. Applicants
request authority to transfer to the city the allocation to provide utility electric
service to several areas that now are allocated exclusively to -PacifiCorp.
PacifiCorp is a utility company providing electric service to the public in ()regon,
including subscribers within the subject territory. The joint application was
designated- docket No. VA 34.
The application involves eight parcels annexed into the city in recent
years. The subject parcels arc adjacent to areas now served by the city. The
parcels were allocated to PacifiCorp when those areas were outside the C~ity of
Ashland's boundaries. If the application is approved, the city will add the areas to
its electric service territory, and almost all of the customers now served by
PacifiCorp in those areas will be served by the city.
ORDER NO. S~ 1 - 347 -
The legal descriptions of the eight parcels are contained in
Appendix "A" to this order.
Applicants request that eleven customer locations in the subject
areas continue to receive service from PacifiCorp. They agree that it will be more
efficient for PacifiCorp to continue service at those locations. Their names and
addresses are shown .on Appendix "B" to this order.
The agreement to allocate territory settles a long-standing dispute
. between the two parties. The dispute has involved litigation; the agreement to
.allocate territory is a part of the settlement of the litigation.. The contract
between the parties. also discusses how future annexations into the city will affe:ct
territorial allocation.
The Commission published notice {)f the proposed transfer of
territorial aUocation, pursuant to ORS 758.420. No one requested a hearing or
filed comments.
ORS 758.415 establishes the criteria by which territorial contracts
are to he judged by the Commission. The Commission must find that the contract
will elin1inate or avoid unnecessary duplication of facilities, will promote efficient,
economic, and safe operation of the utility systems of the parties, and will provide
for adequate and reasonable service to the territories and customers involved.
The agreement establishes a icing-term service boundary between
the two electric systems and establishes a valuation formula for future
condemnation~ of PacifiCorp's property by the city. Approval of the contract will
provide certainty as to the area each party will serve in the future. This will allo~
the parties to better plan to meet the expected load. Approval of the contraGt will
avoid duplication of facilities and service by allocating customers along city
boundary lines (present and future ) and transferring facilities to match. the
customer allocation. Safe, adequate, and reasonable service will be provided to
the subject areas and customers.
2
ORDER No.9' - ~ 4 7
. DOCKET UP 61
On June 22, 1990, PacitiCorp filed an application for authority to
sell to the City of Ashland certain facilities used to provide electric service to the
eight areas at issue in docket No. UA 34. PacifiCorp's application was designated
docket No. UP 61. The sales price of the facilities is $200,000. Sal~ of the
facilities is part of the settlement of the dispute between the city and PacitiCorp.
ORS 757.480 prohibits utilities from ~elling or otherwise disposing of
their property without the Commission's approval. OAR 860-27-025 specifies the
information which must accompany an application to sell o{ lease utility property.
PacifiCorp's application contains the necessary information.
PacifiCorp does not seek any ratemaking determination in this
proceeding.
CONCLUSIONS
1. The proposed transfer of allocated territory and facilities to
provide service to that territory is in the public interest and win not impair
PacifiCorp's ability to provide electric service to the public in Oregon.
2. For ratemaking purposes, the Commission reserves to a
future proceeding its judgment on the reasonableness of all financial aspects of th~
transactions.
3. Docket No. VA 34 and docket No. UP 61 relate to the same
transactions between the same parties. The two dockets should be considered
together and resolved in this order.
ORDER
IT IS ORDERED that:
1. The application of PacifiCorp and the City of Ashland to
approve the contract between them transferring to the dty
the exclusive territorial allocation of certain areas is grant~d
and the contract is approved.
3
ORDER NO. ~) 1 - 347
2. The territories de,scribed in' Appendix "A" to this order are
allocated exclusively for electric service to the City of
Ashland.
3. PacitiCorp shall continu~ to provide electric service to th~
a<,ldresses shown in Appendix "B" to this order.
4. The application of PacifiCorp for authority to sell to the City
of Ashland certain facilities'is granted.
5. PacifiCorp shall file, as soon as possibl~:
a. Executed or conformed copies of all documents related to
the transactions approved in this order; and
b. . Copies of the journal entries recording the transactions.
Made, entered~ and effective
MAR 6 1991
~ -%./ar-
Myron B. Katz
Chairman
/Pa--
Ron Eachus
Comlnissioner
~~j~
. J oao H. Smith .
Commissioner
A party may request rehearing or reconsideration of this order pursuant to
ORS 756.561. A party Inay appeal this order pursuant to.ORS 756.580.
4
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EXHIBIT 1
.. '.'
ALLOCATION AGREEMENT
THI~ AGREEMENT ("Agreement")~ made this 9th day of
January, 1990, is by and between the city of Ashland, a
municipal corporation of the state of Oregon, hereinafter
referred to as "Ashland," and Pacific Power & Light Company,
hereinafter referred to as "Pacific," an assumed business name
for a portion of the electric utility operations of PacifiCorp,
an Oregon corporation:
RECITALS:
WHEREAS, Pacific is in the business of furnishing
electrical power and energy to various areas, including the
area 6f Southern Oregon; and
WHEREAS, Ashland furnishes electrical energy to the
residents and businesses within its corporate limits, and
WHEREAS, Ashland largely funds the cost of its
\
\
\
municipal government and services through its sale of
electrical power and energy; and
WHEREAS, in the past Pacific has been furnishing
electrical power and energy to areas outside the city limits of
Ashland and, as Ashland has annexed territo1;.y to its corporate
limit$, Ashland has become the provider of electrical power and
energy to new customers in those newly annexed areas; and
WHEREAS, at present there is litigation pending
between the parties with respect to Ashland's becoming the
provider of electric energy to customers served by Pacific at
1 - ALLOCATION AGREEMENT
EXHIBIT 1
Page 1 o:E 9
,. .
the time of annexation, and in so doing. Ashland has commencled
litigation for the condemnation of Pacific's facilities in the
said annexed areas: and
WHEREAS, the parties have reached an agreement as to
the sale of pacific's facilities in said annexed areas to
Ashland and as.to the price to be paid for such facilities;; and
WHEREAS, for Pacific to provide electrical power and
energy in the Southern Oregon area it needs certainty as to the
area in which it will serve in tbe future so as to be able to
estimate and plan for the growth of the Southern Oregon area
and accordingly the growth and the need for electrical power
and energy in that area: and
WHEREAS, the parties wish to define a'boundary ()f
service of electrical power and energy to prevent duplica1:ion
of service and facilities: and
WHEREAS, the parties have experienced uncertainty and
substantial expense in the past with respect to areas annexed
by Ashland and with resulting disputes as to the cost of
Ashland's acquiring facilities in the areas annexed: and
WHEREAS, the parties wish to establish a formula by
which Pacific's facilities will be sold to Ashland in areas
annexed by Ashland, so as to minimize uncertainty and to avoid
the substantial expenses that have been incurred by both
parties in the past: and
WHEREAS, the parties acknowledge that the formulae
set forth herein are reasonable in light of anticip3ted loss to
2 - ALLOCATION AGREEMENT
EXHIBIT 1
n_~~ ~ ^~ 0
Pacific under the circumstances set forth herein, that such
formulae constitute a genuine pre-estimate of loss, and tha~:
proof of actual loss would be difficult: and
WHEREAS, so long as this Agreement shall remain in
effect the parties also acknowledge that Ashland does hav~ the
legal right to become the sole provider of electrical power and
energy in areas annexed to its corporate limits and that,
accordingly, Pacific does agree to sell its facilities to
Ashland in areas annexed to Ashl~nd in the future: and
WHEREAS, in the case of PacifiCorp v. city of
Ashland, .Case No. 86-0553-J-l, Pacificorp has cross-complained
against Ashland for inverse condemnation and it is intended
that this dispute be settled by this Agreement: and
WHEREAS, the parties hereto wish to settle the
various claims between them and in regard thereto, it is
understood and agreed that this settlement, with respect to the
litigation mentioned below, is the compromise of doubtful and
disputed claims, and that this Agreement is not to be construed
as admissions of liability on the part of either party and this
settlement is intended to avoid further litigation and to
purchase peace in the premises. The parties further
acknowled~e that this Agreement is entered into under threat of
condemnation, and that none o.f the terms or conditions he:reof
can reasonably provide th~ basis for determining "just
compensationN under any applicable law: and
3 - ALLOCATION AGREEMENT
EXHIBIT 1
Page 3 of 9
WHEREAS, the parties do hereby conclude and settlle
all pending litigation between them.
NOW,' THEREFORE, based upon the foregoing recitals,
the truth of which is hereby admitted and premises and
agreements contained herein, the parties do agree as follows:
1. Pacific shall forthwith move to dismiss with
prejudice its claims against Ashland in PacifiCorp v. city of
~shland, Case No. 86-0553-J-1.
2. Ashland shall forthwith move to dismiss with
,
prejudice its case against Pacific being Ashland v. PacifiCorp,
Case No. 89-1096-L-2, wherein Ashland is seeking condemnat.icn
.
of Pacific's facilities within the present city limits.
3. Pacific does hereby sell to Ashland all electri~
distribution lines, facilities and equipment of 12.5 kilovo1ts .
and below (hereinafter referred to as WDistribution
Facilities") located in the areas covered by the above lawsuit$
as more particularly specified in Exhibit "A", appended hereto
and incorporated herein by this reference (hereinafter re~ferred
to as "subject PropertyW). Pacific warrants that it has a good
and absolute right. to sell and convey the subject proper1:y and
all property contemplated to be sold to Ashland in the future
by the terms of this Agreement and that all such property is or
will be free and clear of all liens, claims, or encumbrances of
every kind whatsoever. Further, pacific agrees to indemnify
and hold Ashland harmless from and against, and to reimburse
Ashland with respect to any and all lawsuits, damages,
4 - ALLOCATION AGREEMENT
EXHIBIT 1
Page 4 of 9
. .
riabilities, costs, expenses, and deficiencies including
interest, penalties, and reasonable attorney's fees, reasonably
incurred by Ashland by reason of, or arising out of, or in
connection with a breach of any representation or warranty made
by Pacific regarding Pacific's interest in the subject
Property.
4. The par~ies shall share equally in the cost of
testing all transformers for PCB's. Pacific shall remove and
dispose of any transformer that contains 50 parts per million
,
or greater of PCB's at Pacific's sole expense prior to the sale
of subject Property to Ashland. Ashland shall provi1e at its
sole expense replacement transformers for all transformers.
removed by Pacific on account of PCB's.
5. Concurrent with Oregon Public utility commission'
("PUC") approval of this Agreem~nt, Ashland shall pay to
pacific, in addition" to any sums paid to Pacific un~er any
other provision of this Agreement, the sum of $200,000 as
consideration for the Subject Property. Such amount shall
include up to $5000 in physical ~eparation costs that will be
incurred by Pacific in order to carry out the provisions of
this Agreement.
6. After the effective date of this Agreement, in
circumstances involving new customers for electrical service 1n
areas that Ashland intends to annex that are both (a) within
Ashland's service boundary as defined by Exhibit wan but not
yet annexed, and (b) within which Ashland intends to provide
5 - ALLOCATION AGREEMENT
EXHIBI~r 1
Paqe 5 of 9
retail electric service, Ashland may serve such customers with
its own facilities. In the event that Ashland is unable to
serve such new customers from its facilities, the parties shall
use their best efforts to arrive at mutually acceptable tet~S
and conditions governing which p~rty shall provide service to
such customer most efficiently pending annexation. These terms
and conditions may include, but are not limited to, servicle by
Ashland pursuant to the letter-form energy exchange agreement
between the parties dated April 1, 1982, as modified on
,
August 2, 1985, and as such agreement may be modified in the
future.
.
7. The parties jointly agree that in the future as
Ashland annexes areas within its service boundary as defined in
_Exhibit "B," Ashland shall purchase from Pacific and Pacific
shall sell to Ashland all of Pacific's Distribution Facilities
located in the area being annexed with the formula for the
price of such facilities to be two (2) times pacific's gross
revenue from the sale of electrical power and energy to
customers ""ithin the annexed area during the immediately
preceding twelve months, which amount shall be annualized in
the event service was provided for fewer than twelve months.
In addition, in all future sales (that is, other than the one
for $200,000 mentioned above), there may be payable to pacific
its reasonable physical separation costs. Ashland shall have
the choice of paying the reasonable physical separation costs
or allowing the remaining customer(s) to be served by Pc~cific
6 - ALLOCATION AGREEMENT
EXHI BI'I' 1
paae 6 of 9
continue all the litigation between the parties that is
presently pending.
10. . This Agreement shall be effective upon its
execution by the parties and approval by the PUC and shall
continue in effect until terminated by mutual agreement. This
Agreement shall be binding upon the successors and assigns of
the parties. This Agreement is entered into by Ashland in its
proprietary capacity.
11. Each party releases any and all claims it may
.,
have against the other arising from the same and distribution
of electrical power and energy in the areas covered by the
above litigation and all matters relating thereto.
12. Nothing contained in this Agreement shall be
construed as limiting Pacific's right to construct, operat~e,
and maintain electric facilities within the city of Ashland
used to provide electrical power and energy to any of pacific/~
existing or future customers that the city does not lntend to
serve.
13. The parties agree to discuss terms and
conditions under which Pacific would supply Ashland with
wholesale electrical power and energy.
14. In any legal proceeding arising out of,
interpreting or enforcing this Agreement, the prevailing party
8 - ALLOCATJON AGREEMENT
EXHIBIT 1
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. ,-:'
at trial or on appeal shall be "entitled to an award or
reasonable attprneys' fees and costs.
IN WITNESS WHEREOF, the part~es hereto have set their
hands and seals.
CITY OF ASHLAND, a Municipal
corporation
ATTEST:
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city Recorder
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By. .~...: t::' /' ~
Mayor
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PACIFICORP, dba PACIFIC POWER &
LIGHT COMPANY
B~~- 'j~~' ~*-
Vice resid~nt
9 - ALLOCATION AGREEMENT
EXHIBIT 1
Page 9 of.9
Page 1 /1
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CITY OF
ASHLAND
20 E MAIN ST.
ASHLAND, OR 97520
(541) 488-5300
7/21/2005
VENDOR: 009836
PACIFIC POWER
925 SOUTH GRAPE STREET
MEDFORD, OR 97501
SHIP TO: Ashland Electric Departm~~nt
(541) 488-5354
90 N MOUNTAIN
ASHLAND, OR 97520
FOB Point:
Terms: Net
Req. Del. Date:
Speciallnst:
Req. No.:
Dept.: ELECTRIC
Contact: Dick Wanderscheid
Confirming? No
BILL TO: Account Payable
20 EAST MAIN ST
541-552-2028
ASHLAND, OR 97520
IE 690.11.18.00.70410
I
SUBTOTAL
TAX
FI~EIGHT
TOTAL
12672.00
0.00
0.00
12,672.00
VENDOR COpy
CITY OF
ASJHLAND
REQUISITION FORM
Date of Requ~3st:
07/21/2005
THIS REQUEST IS A:
D Change Order( existing PO #
Required Date of Delivery/Service:
ASAP
Vendor Name
Address
City, State, Zip
Telephone Number
Fax Number
Contact Name
P:lr.ifir. Pnwpr
925 G raoo Street
Medford, Oregon 97501
541-776-5499
Monte Mendenhall
SOLICITATION PROCESS
/
Small Procurement ~ Sole Source 0 Invitation to Bid
o Less than $5,000 o Written findings attached (Copies on file)
o Quotes (Not required)
Cooperative Procurement 0 Reauest for Proposal
o State of ORN/A contract (Copies on file)
Intennediate Procurement o Other government agency contract 0 Special I Exempt
o (3) Written Quotes 0 Copy of contract attached 0 Written findings attached
(Copies attached) 0 Emel'Qencv
0 Contract # 0 Written findings attached
TCJ.tal Cost
Per attached PROPOSAL
Item # Quantity
Unit
Description of MATERIALS
Unit PriCE!
Total Cost
Project Number _ _ _ _ _ _ - _ _ _
D Per attached QUOTE
Account Number 690.11.18.00.704100
.. Items and services must be charged to the appropriate account numbers for the financials to reflect the ac.tual expenditures accurately.
By signing this requisition form, I certify that the' 0 ation provided above meets the City of Ashland public contracting requirements,
and the documentation ~v;ded on ques .
Employee Signatu~ SupervisorlDept. Head Signature:
G: Finance\Procedure\AP\Forms\8_Requisition form revised
Updated on: 7/21/2005