HomeMy Public PortalAboutMemorandum of UnderstandingMEMORANDUM OF UNDERSTANDING
This MEMORANDUM OF UNDERSTANDING is entered into on
, 1997, between Idaho Power Company, a corporation of the State of Idaho
("IPCo") and the City of McCall, a municipal corporation of the State of Idaho ("City").
WITNESSETH:
Whereas, the City desires to promote the installation of underground power lines in
the public rights -of -way of the City; and
Whereas, IPCo is willing to provide for the installation of underground distribution
power lines in the City's rights -of -way, consistent with its standard undergrounding policies,
including Rule H, Distribution Line Extensions, or its successor, on file with the Idaho Public
Utilities Commission.
Now, therefore, in consideration of the mutual covenants set forth herein, IPCo and
the City agree as follows:
1. IPCo will notify the City when it plans to construct new overhead distribution
power lines or to upgrade or relocate existing overhead distribution power lines within the City's
public rights -of -way. "Distribution power lines" will consist of IPCo power lines of 34.5 kV or less.
IPCo's notice will identify the new overhead distribution power line to be installed or the existing
overhead distribution power line to be upgraded or relocated, and will provide a preliminary
estimate of the overhead/underground differential for the distribution power line. The
"overhead/underground differential" will represent the estimated difference in cost between
installing the new distribution power line overhead or underground, or between installing the
upgraded or relocated distribution power line overhead or underground. The cost of installing
upgraded or relocated distribution power lines underground will include any customer facility
upgrade costs associated with the underground distribution power line installation. "Customer
facility upgrade" costs include the costs incurred for upgrades or replacements of customer electrical
facilities which are required to allow the customer's electrical facilities to properly connect with the
new underground distribution power line.
2. Idaho Power's preliminary estimate of the overhead/underground differential
will include a standard per -foot calculation of IPCo's cost of installing the distribution power line
underground, plus a general estimate by a licensed electrician of the cost, if any, of customer facility
upgrades. If the City declines to request underground installation of the distribution power line
within three (3) months after receiving IPCo's preliminary estimate, the City will reimburse Idaho
Power for the cost, if any, of the estimating work provided by the licensed electrician.
3. If the City requests a binding estimate of the overhead/underground
differential after receiving IPCo's preliminary estimate, IPCo will develop a binding estimate based
on an engineering design of the underground distribution power line installation and a detailed
estimate from a licensed electrician of the cost, if any, of customer facility upgrades. If the City
declines to request underground installation of the distribution power line within three (3) months
after receiving IPCo's binding estimate, the City will reimburse Idaho Power for its engineering
design costs in developing the binding estimate, plus the cost, if any, of the detailed estimating work
provided by the licensed electrician.
4. If the City requests that IPCo install the distribution power line underground
based on the binding estimate, it will pay IPCo the amount of the binding estimate within thirty (30)
days after IPCo issues the binding estimate. IPCo will then proceed with the installation of the
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underground distribution power line. IPCo will have sole authority to determine the design and
construction requirements and specifications for the underground distribution power lines and related
facilities installed under this Memorandum of Understanding.
5. IPCo's agreement to install underground distribution power lines under the
terms of this Memorandum Of Understanding will not apply where:
a. IPCo determines in good faith that the installation of the underground
distribution power line would not be advisable based on IPCo's electrical system operating
requirements; or
b. IPCo determines in good faith that there is not satisfactory right- of -
way (including any required permits or approvals) available for the installation of the underground
distribution power line.
6. In the event that IPCo is required by the City to relocate an underground
distribution power line installed under the provisions of this Memorandum of Understanding, the
City will reimburse IPCo for any amount by which the cost of relocating the underground
distribution power line exceeds the cost of relocating a comparable overhead distribution power line
as calculated by IPCo.
7. Except where otherwise expressly provided herein, all of IPCo's actions
hereunder related to the installation of underground distribution power lines shall be governed by
IPCo's standard undergrounding policies, including Rule H, Distribution Line Extensions, or its
successor, on file with the Idaho Public Utilities Commission.
8. References to the "City's rights -of -way" hereunder shall include all streets,
alleys and public places owned by the City. Notwithstanding any other provision of this Agreement,
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Idaho Power expressly agrees that it will not install power lines in public places of the City
(including but not limited to parks, squares or golf courses) without the advance written approval
of the appropriate agency(ies) or official(s) of the City.
9. This Memorandum Of Understanding is subject to the jurisdiction of the Idaho
Public Utilities Commission.
CITY OF MCCALL
By:
Ayo R
IDAHO POWER COMPANY
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